Oceaneering International Inc (OII)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.21 | 0.21 | 0.35 | 0.36 | 0.39 |
| Debt-to-capital ratio | 0.40 | 0.43 | 0.57 | 0.58 | 0.59 |
| Debt-to-equity ratio | 0.67 | 0.76 | 1.35 | 1.39 | 1.46 |
| Financial leverage ratio | 3.27 | 3.57 | 3.91 | 3.89 | 3.71 |
Oceaneering International Inc's solvency ratios show a generally improving trend over the years. The Debt-to-assets ratio has decreased from 0.39 in 2020 to 0.21 in 2024, indicating a lower proportion of the company's assets financed by debt. The Debt-to-capital ratio has also reduced from 0.59 in 2020 to 0.40 in 2024, signaling a decline in the company's reliance on debt for funding its operations.
Furthermore, the Debt-to-equity ratio has exhibited a significant drop from 1.46 in 2020 to 0.67 in 2024, highlighting a strengthening of the company's financial structure and a decreasing dependency on debt financing. Lastly, the Financial leverage ratio has shown a consistent decline from 3.71 in 2020 to 3.27 in 2024, indicating a reduction in the company's financial risk and leverage level over the years.
Overall, the declining trend in Oceaneering International Inc's solvency ratios suggests an enhanced financial position, lower financial risk, and improved ability to meet its debt obligations, which may be viewed positively by investors and creditors.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 6.49 | 4.96 | 2.90 | 1.03 | -10.16 |
Based on the provided data, Oceaneering International Inc's interest coverage has shown volatility over the past five years. In December 2020, the company had an interest coverage ratio of -10.16, indicating that its operating income was insufficient to cover its interest expenses. This suggests a high financial risk and a potential challenge in meeting interest obligations from operating profits alone.
However, in the subsequent years, Oceaneering International Inc's interest coverage improved significantly. By December 2021, the ratio increased to 1.03, still indicating that the company's operating income only just covered its interest expenses. The following years showed further improvement, with interest coverage reaching 2.90 by December 2022, 4.96 by December 2023, and 6.49 by December 2024.
The rising trend in interest coverage from 2021 to 2024 suggests that Oceaneering International Inc has been better positioned to meet its interest obligations with its operating income. A higher interest coverage ratio generally indicates a lower risk of default on debt payments and reflects improved financial health and stability. It is essential for investors and stakeholders to monitor this trend to ensure the company's ability to service its debt in the long run.