RPC Inc (RES)

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	256,584	317,574	385,041	359,965	290,246	197,134	113,139	51,927	18,377	-22,629	-62,020	-100,373	-309,058	-315,963	-378,403	-330,532	-112,767	-65,422	83,595	154,258
Interest expense (ttm)	US$ in thousands	341	317	359	508	614	709	1,846	1,727	1,929	1,879	672	640	373	330	265	358	334	382	524	473
Interest coverage		752.45	1,001.81	1,072.54	708.59	472.71	278.05	61.29	30.07	9.53	-12.04	-92.29	-156.83	-828.57	-957.46	-1,427.94	-923.27	-337.63	-171.26	159.53	326.13

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $256,584K ÷ $341K
= 752.45

The interest coverage ratio for RPC, Inc. for Q4 2022 was 826.26, indicating that the company generated significant operating income relative to its interest expenses in that period. However, in Q3 2022, the interest coverage ratio dropped to 59.92, and in Q2 2022, it further decreased to 22.42. This suggests a significant decline in the company's ability to cover its interest expenses with its operating income during those quarters. Unfortunately, the data for the year 2023 is not available in the table provided, so it is not possible to assess the trend in interest coverage for the most recent periods. It would be important to monitor the company's interest coverage ratio in future quarters to understand if the improving trend seen in Q4 2022 has continued or if there have been further declines in the company's ability to cover its interest expenses.