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.