Schlumberger NV (SLB)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 6,066,000 | 5,713,000 | 4,710,000 | 2,866,000 | -10,767,000 |
| Interest expense | US$ in thousands | 512,000 | 503,000 | 490,000 | 539,000 | 563,000 |
| Interest coverage | 11.85 | 11.36 | 9.61 | 5.32 | -19.12 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $6,066,000K ÷ $512,000K
= 11.85
The interest coverage ratio for Schlumberger NV has shown a significant improvement over the past few years. As of December 31, 2020, the interest coverage ratio was a negative -19.12, indicating the company's inability to cover its interest expenses with its earnings. However, by December 31, 2021, the interest coverage ratio had improved to 5.32, showing that the company's operating income was able to cover its interest expense more than five times.
This positive trend continued in the following years, with the interest coverage ratios reaching 9.61 by December 31, 2022, 11.36 by December 31, 2023, and 11.85 by December 31, 2024. These increasing ratios suggest that Schlumberger NV's ability to meet its interest obligations has significantly improved, indicating a stronger financial position in terms of servicing debt.
Overall, the improving trend in Schlumberger NV's interest coverage ratio signifies a positive development in the company's ability to manage its debt and interest obligations over the years, which bodes well for its financial stability and performance.
Peer comparison
Dec 31, 2024