Oceaneering International Inc (OII)

Oceaneering International, Inc.'s solvency ratios indicate its ability to meet its long-term debt obligations. The trend analysis of the solvency ratios for the past five years shows a mixed picture.

1. Debt-to-assets ratio: This ratio has decreased from 0.35 in 2022 to 0.21 in 2023, reflecting a positive trend. A lower debt-to-assets ratio indicates lower financial risk and a stronger financial position as a smaller portion of the company's assets are financed by debt.

2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also shown a declining trend from 0.57 in 2022 to 0.43 in 2023. This indicates that a smaller proportion of the company's capital is funded by debt, which is a positive signal for solvency.

3. Debt-to-equity ratio: The debt-to-equity ratio has decreased significantly from 1.35 in 2022 to 0.76 in 2023. A lower debt-to-equity ratio signifies a lower level of leverage and financial risk, as the company is relying less on debt financing compared to shareholders' equity.

4. Financial leverage ratio: Oceaneering International's financial leverage ratio has fluctuated over the years, with a peak at 3.91 in 2022 and decreasing to 3.57 in 2023. This ratio indicates the proportion of a company's assets that are financed by debt compared to equity. A decreasing trend suggests that the company is becoming less leveraged and potentially less risky.

In summary, Oceaneering International, Inc. has shown improvements in its solvency ratios over the years, as indicated by decreasing debt ratios and leverage ratios. This trend suggests that the company has been managing its debt levels effectively and improving its financial strength and stability. However, continuous monitoring of these ratios is recommended to ensure sustained progress in maintaining a healthy solvency position.

---

Coverage ratios

Oceaneering International, Inc.'s interest coverage ratio has shown improvement over the past five years. The interest coverage ratio was 8.69 in 2023, indicating that the company generated sufficient operating income to cover its interest expenses approximately 8.69 times. This is a positive sign as it suggests that the company's ability to meet its interest obligations has strengthened compared to the previous years.

In 2022, the interest coverage ratio was 3.46, reflecting an improvement from the prior year. The ratio of 1.11 in 2021 shows that the company barely generated enough operating income to cover its interest expenses. In contrast, in 2020 and 2019, the ratios were negative at -0.72 and -3.31, respectively, indicating that the company faced challenges in meeting its interest obligations from operating income alone during those years.

Overall, the increasing trend in Oceaneering International, Inc.'s interest coverage ratio suggests an enhanced capacity to meet interest expenses through operating income, which is a favorable indication for the company's financial health and ability to service its debt obligations.