Oceaneering International Inc (OII)
Interest coverage
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 246,270 | 215,840 | 202,436 | 191,271 | 181,328 | 176,055 | 165,001 | 138,652 | 110,863 | 56,114 | 25,008 | 24,977 | 39,799 | 52,851 | -23,538 | -51,539 | -446,079 | -700,729 | -645,303 | -649,756 |
Interest expense (ttm) | US$ in thousands | 37,917 | 36,097 | 36,443 | 36,444 | 36,523 | 38,203 | 37,953 | 38,055 | 38,215 | 37,672 | 37,736 | 37,846 | 38,810 | 40,329 | 39,963 | 41,845 | 43,900 | 45,029 | 47,161 | 45,749 |
Interest coverage | 6.49 | 5.98 | 5.55 | 5.25 | 4.96 | 4.61 | 4.35 | 3.64 | 2.90 | 1.49 | 0.66 | 0.66 | 1.03 | 1.31 | -0.59 | -1.23 | -10.16 | -15.56 | -13.68 | -14.20 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $246,270K ÷ $37,917K
= 6.49
The interest coverage ratio of Oceaneering International Inc shows a significant improvement over the analyzed periods. The company experienced negative interest coverage ratios in the range of -14.20 to -10.16 from March 2020 to December 2020, indicating that the company's earnings were insufficient to cover its interest expenses during that period.
However, there was a positive turnaround starting from March 2021, with the interest coverage ratio gradually increasing to 6.49 by December 2024. This improvement suggests that Oceaneering International Inc's earnings have become more sufficient to cover its interest expenses, indicating a favorable trend in the company's financial health.
Overall, the increasing trend in the interest coverage ratio is a positive signal, indicating that the company is better positioned to meet its interest obligations and potentially reduce financial risk associated with debt repayment.
Peer comparison
Dec 31, 2024