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