Exxon Mobil Corp (XOM)
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 | 48,486,000 | 52,288,000 | 76,714,000 | 31,623,000 | -26,914,000 |
| Interest expense | US$ in thousands | 996,000 | 849,000 | 798,000 | 947,000 | 1,158,000 |
| Interest coverage | 48.68 | 61.59 | 96.13 | 33.39 | -23.24 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $48,486,000K ÷ $996,000K
= 48.68
The interest coverage ratio of Exxon Mobil Corp has shown significant fluctuations over the past five years, indicating varying levels of the company's ability to cover its interest expenses with operating income. As of December 31, 2020, the interest coverage ratio was at a concerning -23.24, suggesting that the company's operating income was insufficient to cover its interest obligations, potentially signaling financial distress.
However, there has been a strong improvement in the company's interest coverage ratio since then. By December 31, 2021, the ratio had improved substantially to 33.39, indicating a significant recovery in the company's ability to service its interest payments.
This positive trend continued into subsequent years, with the interest coverage ratios for December 31, 2022, December 31, 2023, and December 31, 2024, showing further improvements to 96.13, 61.59, and 48.68, respectively. These ratios suggest a strengthened financial position for Exxon Mobil Corp, with ample operating income to comfortably cover its interest expenses.
Overall, the upward trajectory of Exxon Mobil Corp's interest coverage ratio indicates an enhanced ability to meet its interest obligations, reflecting improved financial health and stability over the analyzed period.
Peer comparison
Dec 31, 2024