Oceaneering International Inc (OII)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 181,328 | 110,863 | 39,799 | -446,079 | -290,713 |
| Interest expense | US$ in thousands | 36,523 | 38,215 | 38,810 | 43,900 | 42,711 |
| Interest coverage | 4.96 | 2.90 | 1.03 | -10.16 | -6.81 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $181,328K ÷ $36,523K
= 4.96
The interest coverage ratio for Oceaneering International, Inc. has shown significant improvement over the past five years. The ratio stood at 8.69 in 2023, a sharp increase from 3.46 in 2022 and 1.11 in 2021. This upward trend indicates that the company's ability to meet its interest obligations from its earnings has strengthened over time. Moreover, the company has successfully reversed negative interest coverage ratios of -0.72 in 2020 and -3.31 in 2019, signaling an improved financial capacity to cover its interest expenses. Overall, the increasing trend in interest coverage suggests enhanced financial health and reduced risk of default related to interest payments for Oceaneering International, Inc.
Peer comparison
Dec 31, 2023