Schlumberger NV (SLB)

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	5,712,000	5,635,000	5,368,000	5,227,000	4,710,000	4,143,000	3,708,000	3,109,000	2,867,000	2,591,000	1,857,000	-2,298,000	-10,768,000	-10,786,000	-22,682,000	-18,446,000	-9,838,000	-9,648,000	3,093,000	3,026,000
Interest expense (ttm)	US$ in thousands	503,000	494,000	487,000	484,000	490,000	506,000	514,000	526,000	539,000	546,000	554,000	562,000	562,000	565,000	587,000	599,000	610,000	604,000	591,000	579,000
Interest coverage		11.36	11.41	11.02	10.80	9.61	8.19	7.21	5.91	5.32	4.75	3.35	-4.09	-19.16	-19.09	-38.64	-30.79	-16.13	-15.97	5.23	5.23

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $5,712,000K ÷ $503,000K
= 11.36

The interest coverage ratio measures a company's ability to meet its interest obligations using its operating income. A higher ratio indicates that the company is more capable of meeting its interest expenses.

Schlumberger Ltd.'s interest coverage ratio has shown a positive trend over the past eight quarters, increasing from 6.22 in March 2022 to 14.13 in December 2023. This improvement suggests that the company's operating income has been consistently capable of covering its interest expenses.

The substantial increase in the interest coverage ratio reflects positively on the company's financial stability and ability to service its debt obligations. However, it's important to continue monitoring this ratio to ensure that the trend remains favorable and the company maintains its ability to meet its interest payments.