Schlumberger NV (SLB)

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	6,066,000	6,098,000	5,998,000	5,884,000	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
Interest expense (ttm)	US$ in thousands	512,000	511,000	504,000	499,000	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
Interest coverage		11.85	11.93	11.90	11.79	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

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $6,066,000K ÷ $512,000K
= 11.85

The interest coverage ratio of Schlumberger NV has shown a significant improvement over the past few years. The ratio was negative in the early part of the period, indicating that the company's operating income was insufficient to cover its interest expenses during those periods. However, starting from March 2021, the interest coverage turned positive and has been steadily increasing since then.

As of December 31, 2024, the interest coverage ratio stands at 11.85, indicating that the company's operating income is 11.85 times its interest expenses. This indicates that Schlumberger NV has a strong ability to meet its interest obligations from its operating earnings, providing a comfortable margin of safety.

The improving trend in interest coverage reflects a better financial position for Schlumberger NV, indicating a stronger ability to service its debt and suggesting improved overall financial health for the company.