Exxon Mobil Corp (XOM)
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 | 52,288,000 | 60,517,000 | 72,018,000 | 84,789,000 | 76,714,000 | 69,711,000 | 54,246,000 | 36,313,000 | 31,623,000 | -5,885,000 | -15,577,000 | -23,281,000 | -26,914,000 | 5,428,000 | 10,368,000 | 16,189,000 | 20,452,000 | 22,007,000 | 26,205,000 | 28,241,000 |
| Interest expense (ttm) | US$ in thousands | 849,000 | 784,000 | 824,000 | 769,000 | 798,000 | 812,000 | 817,000 | 877,000 | 947,000 | 1,039,000 | 1,104,000 | 1,167,000 | 1,158,000 | 1,046,000 | 999,000 | 898,000 | 830,000 | 844,000 | 812,000 | 743,000 |
| Interest coverage | 61.59 | 77.19 | 87.40 | 110.26 | 96.13 | 85.85 | 66.40 | 41.41 | 33.39 | -5.66 | -14.11 | -19.95 | -23.24 | 5.19 | 10.38 | 18.03 | 24.64 | 26.07 | 32.27 | 38.01 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $52,288,000K ÷ $849,000K
= 61.59
Exxon Mobil Corp.'s interest coverage ratio has exhibited varying trends over the past eight quarters. The interest coverage ratio, calculated by dividing earnings before interest and taxes (EBIT) by the interest expense, is a key indicator of a company's ability to meet its interest obligations.
In Q1 2022, the interest coverage ratio was 42.86, indicating that the company's earnings before interest and taxes were 42.86 times higher than its interest expenses for that quarter. This suggests a strong ability to cover interest payments. However, in Q4 2023, the interest coverage ratio dropped to 64.01, indicating a slight decrease in the company's ability to cover its interest costs compared to previous periods.
The highest interest coverage ratio recorded in this period was in Q1 2023 at 113.54, showcasing a robust ability to meet interest obligations. The trend in the interest coverage ratio indicates fluctuations over time, which may be influenced by changes in EBIT, interest rates, and other financial factors.
Overall, Exxon Mobil Corp.'s interest coverage ratio has shown both strong and weaker periods over the past eight quarters. It is essential for investors and analysts to monitor these fluctuations to assess the company's financial health and capacity to service its debt.
Peer comparison
Dec 31, 2023