Oceaneering International Inc (OII)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	-290,713	-133,687	-130,045	-140,047
Interest expense (ttm)	US$ in thousands	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	42,711	40,689	39,192	37,795
Interest coverage		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	-6.81	-3.29	-3.32	-3.71

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $181,328K ÷ $36,523K
= 4.96

Oceaneering International, Inc.'s interest coverage has exhibited a positive trend over the quarters presented in the table. The interest coverage ratio has been steadily increasing, reflecting the company's improving ability to meet its interest payment obligations from its operating income. This indicates that the company's earnings before interest and taxes (EBIT) are sufficient to cover its interest expenses comfortably.

In Q4 2023, the interest coverage ratio stood at 8.69, which is the highest among the quarters presented. This implies that the company generated operating income nearly nine times higher than its interest expenses in that period. The consistent improvement in the interest coverage ratio from Q1 2022 to Q4 2023 suggests the company's financial health is strengthening, and it is becoming more capable of servicing its debt obligations.

Furthermore, the significant increase in the interest coverage ratio from Q1 2022 to Q4 2023 indicates that Oceaneering International, Inc. has enhanced its profitability and operational efficiency, leading to a more sustainable financial position. This positive trend may also indicate effective cost management and revenue growth strategies implemented by the company.