Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Price to FCFE (P/FCFE)
- Return on Equity (ROE) since 2005
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Solvency Ratios (Summary)
Chevron Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Debt to Equity Ratio
- The debt to equity ratio initially increased from 0.22 in March 2020 to a peak of 0.34 in December 2020 and March 2021. Subsequently, it decreased steadily, reaching a low of 0.12 by September 2023. In the periods following, a slight upward trend appeared, pushing the ratio up to 0.20 by March 2025. This suggests an initial increase in reliance on debt financing, followed by a period of de-leveraging and then a modest resurgence in debt usage.
- Debt to Capital Ratio
- This ratio followed a pattern similar to the debt to equity ratio. Starting at 0.18 in March 2020, it rose to a high of 0.26 in March 2021 before declining to 0.11 by September 2023. After this low point, the debt to capital ratio experienced a moderate increase to 0.17 by March 2025, indicating a gradual shift in the capital structure with respect to debt.
- Debt to Assets Ratio
- The debt to assets ratio showed a gentle increase from 0.14 in March 2020 to 0.19 in March 2021, then a decline to 0.08 by September 2023. A marginal upward movement followed, advancing to 0.12 by the first quarter of 2025. This pattern indicates the proportion of debt used in financing total assets decreased significantly after early 2021, before a slight rebound in recent quarters.
- Financial Leverage
- Financial leverage steadily grew from 1.64 in March 2020 to a peak of 1.83 in March 2021. It then decreased to around 1.59 by June 2023, followed by a mild upward correction reaching 1.72 by March 2025. The fluctuations in financial leverage mirror those of the debt ratios, reflecting the company's adjustments in capital structure and asset base relative to equity.
- Interest Coverage Ratio
- Interest coverage was not reported for the initial quarters of 2020 but showed significant negative values at -9.69 and -11.85 through December 2020. From March 2021 onwards, a marked improvement occurred, with the ratio increasing dramatically from 8.5 to a peak of 102.29 in March 2023. There was a gradual decline after this peak to 37.58 by March 2025. The sharp rise indicates substantial improvements in earnings relative to interest expenses, enhancing debt servicing ability. The subsequent decline suggests some reduction in earnings or an increase in interest obligations towards the latest periods.
Debt Ratios
Coverage Ratios
Debt to Equity
Chevron Corp., debt to equity calculation (quarterly data)
| Mar 31, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Short-term debt | ||||||||||||||||||||||||||||
| Long-term debt, excluding debt due within one year | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total Chevron Corporation stockholders’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Debt to equity = Total debt ÷ Total Chevron Corporation stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals varying trends in the leverage and equity position over the analyzed periods. Total debt exhibited an initial increase, peaking in the fourth quarter of 2020, followed by a consistent downward trend through the end of 2023. Beginning in early 2024, total debt rose again, with notable increases by the first quarter of 2025.
Stockholders’ equity displayed a different pattern. After a decline during the first three quarters of 2020, equity remained relatively stable throughout 2021, increasing steadily during 2022 and into early 2023. However, from mid-2023 onward, equity experienced a gradual decrease continuing into the first quarter of 2025.
The debt to equity ratio responded accordingly to these changes. The ratio increased sharply during 2020, reaching a high point by the end of that year, then steadily decreased over 2021 through 2023, indicating a reduction in leverage relative to equity. Early 2024 saw the ratio begin to rise again, reflecting the increase in debt and the decline in equity. By the first quarter of 2025, the ratio showed a marked increase compared to the previous quarters.
- Total Debt
- Increased significantly through 2020, peaking at approximately $44.3 billion.
- Decreased steadily from 2021 through 2023 to around $20.6 billion.
- Increased again starting in early 2024, reaching nearly $29.7 billion by Q1 2025.
- Stockholders’ Equity
- Decreased in early 2020, then experienced modest growth through 2022, peaking at roughly $159.4 billion in early 2023.
- Declined gradually from mid-2023 into early 2025 to about $149.2 billion.
- Debt to Equity Ratio
- Rose from 0.22 in Q1 2020 to 0.34 by Q4 2020, signaling increased leverage.
- Fell consistently through 2021 to 2023, reaching a low of 0.12 in Q3 2023, suggesting deleveraging and strengthened equity base.
- Returned to higher levels starting in 2024, rising to 0.20 by early 2025, indicating a renewed increase in leverage relative to equity.
Overall, the trends capture a cycle of increased indebtedness during 2020, likely reflective of conditions during that period, followed by a phase of deleveraging and equity strengthening through 2021 and 2022. The later increase in debt starting in 2024, coupled with a declining equity base, suggests a shift toward higher leverage in the most recent periods analyzed.
Debt to Capital
Chevron Corp., debt to capital calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Short-term debt | ||||||||||||||||||||||||||||
| Long-term debt, excluding debt due within one year | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total Chevron Corporation stockholders’ equity | ||||||||||||||||||||||||||||
| Total capital | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited an increasing trend from March 31, 2020, to December 31, 2020, rising from $32,351 million to $44,315 million. Thereafter, a steady decline was observed through to December 31, 2022, where the total debt decreased to $23,339 million. From March 31, 2023, the debt levels remained relatively stable with minor fluctuations until December 31, 2023, followed by a notable increase starting March 31, 2024, peaking at $29,681 million by December 31, 2024, before dropping to $24,541 million as of March 31, 2025.
- Total Capital
- Total capital showed some variability but overall remained within a relatively narrow range across the entire period. It started at $176,281 million on March 31, 2020, then declined slightly through 2020 and 2021, reaching a low around $170,436 million in December 2021. Subsequently, it increased marginally to a peak of approximately $185,824 million by March 31, 2023, followed by moderate fluctuations and a slight decline toward the end of the period, finishing at $178,925 million on March 31, 2025.
- Debt to Capital Ratio
- The debt to capital ratio mirrored the movements observed in total debt. It increased from 0.18 at the beginning of 2020 and peaked at 0.26 by March 31, 2021, indicating a higher leverage position during that timeframe. From mid-2021 through 2023, the ratio decreased steadily, stabilizing around 0.11 to 0.13, which suggests a meaningful reduction in leverage. Entering 2024, the ratio began climbing again, reaching 0.17 by March 31, 2025, reflecting the recent increase in debt relative to capital.
- Summary of Trends
- The data indicates that debt levels and leverage increased notably during the early phase of the COVID-19 pandemic, peaking around the first quarter of 2021. Following this period, there was a clear deleveraging trend lasting approximately two years, with a reduction in both absolute debt and relative debt to capital. Total capital remained comparatively stable, signifying that changes in leverage were primarily driven by debt adjustments. However, from early 2024, an emerging trend of rising debt and leverage ratios is evident, suggesting a partial reversal of the prior deleveraging strategy. This warrants further monitoring to evaluate the drivers and implications for financial risk and capital structure going forward.
Debt to Assets
Chevron Corp., debt to assets calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Short-term debt | ||||||||||||||||||||||||||||
| Long-term debt, excluding debt due within one year | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends concerning debt levels, asset base, and the relationship between the two over the analyzed periods.
- Total Debt
- Total debt increased significantly from March 31, 2020, reaching a peak near the end of the same year. From US$32.4 billion in March 2020, it rose steadily to US$44.3 billion by December 31, 2020, before beginning a multiyear decline.
- From early 2021 through mid-2023, the total debt consistently decreased, falling from approximately US$45.4 billion in March 2021 to US$20.6 billion by December 2023. This virtually halved the debt over this period.
- Subsequent data points show a rebound in debt, with total liabilities rising again in 2024, reaching US$29.7 billion by March 31, 2025. This indicates a renewed borrowing phase or other financing activities that increased liabilities after a period of deleveraging.
- Total Assets
- Total assets exhibited moderate fluctuations throughout the period. Initially, assets decreased slightly from US$236.7 billion in March 2020 to about US$223 billion by the third quarter of 2020, followed by a recovery phase.
- There was a generally upward trend from late 2020 to late 2022, peaking around US$259.7 billion in the third quarter of 2022. After this peak, total assets showed a gradual decline, falling to approximately US$256.4 billion by March 2025.
- The asset base remained relatively stable overall, with variations within a modest range but no drastic increases or decreases beyond the initial 2020 dip and subsequent recovery.
- Debt to Assets Ratio
- The ratio of debt to assets follows closely the trends of debt and assets combined. Starting from a low of 0.14 in March 2020, it increased steadily to a peak of 0.18 by December 2020, illustrating increased leverage during this period.
- Thereafter, the ratio declined consistently through 2022 and into 2023, stabilizing around 0.08 to 0.09 during these years. This decrease reflects the reduction in debt relative to the asset base, suggesting efforts to deleverage or improve the balance sheet strength.
- In 2024, the debt to assets ratio reversed course, rising back from 0.08 to 0.12 by March 2025, consistent with the rise in total debt seen in the same timeframe.
- Overall, despite some fluctuations, the company maintained a relatively low leverage position with a debt to assets ratio generally below 0.2 throughout the period.
In summary, the company experienced a significant debt buildup during 2020, followed by sustained deleveraging until late 2023. Simultaneously, the asset base remained largely stable with moderate growth followed by softening. The leverage ratio trends reflect disciplined balance sheet management with a temporary increase in leverage during 2020, a strengthening phase through 2023, and a modest re-leveraging starting in 2024.
Financial Leverage
Chevron Corp., financial leverage calculation (quarterly data)
| Mar 31, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Total Chevron Corporation stockholders’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Financial leverage1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Financial leverage = Total assets ÷ Total Chevron Corporation stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The data demonstrates the evolution of total assets, stockholders’ equity, and financial leverage over a series of quarterly periods spanning from March 31, 2020, to March 31, 2025.
- Total Assets
- The total assets experienced a slight decline between the first quarter of 2020 and mid-year 2020, dropping from 236,677 million USD to around 223,000 million USD. Subsequently, there was a gradual recovery and general upward trend, reaching a peak of approximately 263,927 million USD by the third quarter of 2023. After this peak, total assets contracted slightly, maintaining a level just below 260,000 million USD towards the end of the period, indicating relative stability with modest fluctuations.
- Stockholders’ Equity
- Stockholders’ equity mirrored some of this progression but with a delayed and less volatile response. Initially, equity decreased from 143,930 million USD in the first quarter of 2020 to approximately 131,700 million USD by the end of 2020. From 2021 onward, there was a steady increase, peaking near 165,265 million USD in the third quarter of 2023. Post-peak, equity levels showed a moderate decline to about 149,244 million USD by the first quarter of 2025, indicating some equity erosion in recent quarters.
- Financial Leverage
- Financial leverage, calculated as the ratio of total assets to stockholders’ equity, exhibited a consistent but moderate upward tendency during the 2020 period, rising from 1.64 to a high near 1.83 by early 2021. Following this peak, leverage gradually declined, indicating a reduction in the use of debt relative to equity, moving down to 1.59 in mid-2023. Subsequently, leverage ratios displayed a slight increasing trend, ending at 1.72 by the first quarter of 2025. This pattern suggests fluctuations in capital structure with a move toward more conservative leverage after early pandemic volatility, followed by some re-leveraging in recent quarters.
Overall, the trends suggest an initial contraction phase in asset and equity values coinciding with early 2020, followed by recovery and growth through 2023. The latter part of the timeline shows stabilization in asset size but slight declines in equity, coupled with moderate increases in financial leverage. This may reflect changing market conditions, strategic balance sheet management, or external economic factors influencing capital structure and financial positioning over time.
Interest Coverage
Chevron Corp., interest coverage calculation (quarterly data)
| Mar 31, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net income (loss) attributable to Chevron Corporation | ||||||||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interest | ||||||||||||||||||||||||||||
| Add: Income tax expense | ||||||||||||||||||||||||||||
| Add: Interest and debt expense | ||||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Interest coverage1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Interest coverage
= (EBITQ1 2025
+ EBITQ4 2024
+ EBITQ3 2024
+ EBITQ2 2024)
÷ (Interest expenseQ1 2025
+ Interest expenseQ4 2024
+ Interest expenseQ3 2024
+ Interest expenseQ2 2024)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in earnings before interest and tax (EBIT), interest and debt expense, and interest coverage ratio over the observed periods.
- Earnings before Interest and Tax (EBIT)
- EBIT exhibited substantial volatility in 2020, with negative values recorded in the second and fourth quarters, particularly a significant loss in the second quarter ("Jun 30, 2020"). Following this period, EBIT improved markedly in 2021, achieving consistent positive values and peaking in the third quarter ("Sep 30, 2021"). The upward trend continued into 2022 with the highest EBIT recorded in the second quarter, though a slight decline was observed toward the end of the year. In 2023, EBIT fluctuated but generally maintained positive territory with a moderate decrease compared to the previous year’s peak. In 2024 and early 2025, EBIT showed a declining trend overall, with values tapering down from the first quarter of 2024 to the first quarter of 2025, indicating some challenges in maintaining earlier profitability levels.
- Interest and Debt Expense
- Interest and debt expenses remained relatively stable throughout the entire period under review. The expenses fluctuated within a narrow range, with minor quarterly variations. The lowest recorded interest expense occurred in "Dec 31, 2022," while the highest values were seen in the early part of the series (2025 periods showing slightly higher expenses). This stability suggests consistent, albeit slightly increasing, cost associated with debt servicing over time.
- Interest Coverage Ratio
- The interest coverage ratio, which measures the ability to cover interest expenses with EBIT, displayed significant variation. Early in 2020, the ratio was negative due to negative EBIT, illustrating difficulty covering interest costs in those quarters. From the first quarter of 2021 onward, there was a pronounced and rapid increase in the ratio, reaching a peak in the first quarter of 2023. This peak indicates strong earnings relative to interest expenses, implying a robust capacity to meet debt obligations during this period. However, following this peak, the ratio began a gradual decline through 2023 and into 2024 and 2025, reflecting weakening EBIT relative to interest expenses and a reduced margin of safety for interest payments over these later periods.
Overall, the data points to an initial period of operational difficulty in 2020, followed by a period of recovery and strong earnings performance through 2021 and 2022. Interest expenses have been steady, supporting a solid interest coverage ratio during much of the recovery phase. The decline in both EBIT and interest coverage beginning in 2023, extending into 2024 and early 2025, may warrant attention regarding the company's sustained profitability and ability to service debt in the near term.