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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- Income Statement
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- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
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Solvency Ratios (Summary)
Chevron Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 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 increased from 0.22 in the first quarter of 2020 to a peak of 0.34 in the fourth quarter of 2020, reflecting a rise in leverage during that period. Afterward, the ratio showed a general downward trend, reaching a low of 0.12 by the third quarter of 2023. However, from late 2023 through mid-2025, the ratio exhibited a gradual increase again, moving to 0.20 by the second quarter of 2025. This pattern suggests a phase of deleveraging followed by renewed leverage buildup.
- Debt to Capital Ratio
- This ratio followed a pattern similar to the debt to equity ratio. It increased from 0.18 in the first quarter of 2020 to 0.26 in the first quarter of 2021, indicating more debt relative to total capital. Subsequently, a steady decline occurred down to approximately 0.11 by the fourth quarter of 2023. Starting from 2024, the ratio began to rise again, reaching 0.17 by the middle of 2025. The trend implies an initial increase in debt capital leverage, a period of reduction, and a later moderate increase.
- Debt to Assets Ratio
- The debt to assets ratio rose from 0.14 in the first quarter of 2020 to 0.19 in the first quarter of 2021. It then steadily declined over the next two years to 0.08 by the third quarter of 2023. From that point onward, there was a slight increase to 0.12 by mid-2025. This movement again reflects an initial buildup of debt relative to assets, followed by deleveraging, and a modest subsequent rise.
- Financial Leverage
- Financial leverage increased from 1.64 in the first quarter of 2020 to a peak of 1.83 in the first quarter of 2021, indicating higher asset financing through debt. After this peak, a decline took place, bottoming at 1.59 around the second quarter of 2023. From then on, leverage reversed the downward trend and showed a slight upward trend, ending near 1.71 in the second quarter of 2025. This suggests changes in the firm’s capital structure with periods of both increased and decreased reliance on debt financing.
- Interest Coverage Ratio
- Interest coverage was not reported in early 2020 but showed significant negative values (-9.69 and -11.85) in the last two quarters of 2020, signaling an inability to cover interest expenses during that time. Starting from the first quarter of 2021, there was a sharp improvement with the ratio reaching 8.5 and then continuously increasing to a peak of over 102 in the second quarter of 2023. After this peak, the ratio gradually declined but remained well above 20 through mid-2025. This trend denotes a substantial recovery in earnings relative to interest charges, implying improved profitability and interest expense coverage over time.
Debt Ratios
Coverage Ratios
Debt to Equity
Chevron Corp., debt to equity calculation (quarterly data)
| Jun 30, 2025 | 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. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-06-30), 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 Q2 2025 Calculation
Debt to equity = Total debt ÷ Total Chevron Corporation stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- Total debt initially increased from 32,351 million USD in March 2020 to a peak of 44,315 million USD in December 2020. After this peak, a notable decreasing trend occurred through 2021 and 2022, reaching a lower level of 23,339 million USD in December 2022. Debt levels remained relatively stable with slight fluctuations around 20,000 to 23,000 million USD through 2023. However, the data shows a renewed increase in total debt starting in early 2024, rising to 29,467 million USD by June 2025. This indicates a recent shift toward higher borrowing after a prolonged period of reduction and stabilization.
- Total Chevron Corporation Stockholders’ Equity
- Stockholders’ equity exhibited a general upward trend from 143,930 million USD in March 2020 to a peak of 165,265 million USD in September 2023. This increase was relatively steady, with some minor dips, particularly in late 2023 and through 2024. After reaching the peak, equity declined gradually, falling to 146,417 million USD by June 2025. This pattern suggests overall growth in equity through mid-2023 followed by a moderate retrenchment in the most recent periods.
- Debt to Equity Ratio
- The debt to equity ratio rose sharply in 2020, from 0.22 in March to a peak of 0.34 by December 2020, reflecting increased leverage amid rising debt and relatively stable equity. Following this peak, the ratio declined steadily through 2021 and 2022, reaching a low of 0.12 in September 2023, consistent with reductions in debt and growth in equity. From late 2023 onward, the ratio gradually increased again, reaching 0.20 by June 2025. This indicates a recent rise in leverage after a period of deleveraging.
- Summary of Trends
- The company experienced increased debt and leverage in 2020, likely reflecting external pressures or strategic borrowing, alongside relatively stable equity. Subsequently, there was a clear deleveraging phase throughout 2021 and 2022, characterized by substantial debt reduction and equity growth, leading to improved balance sheet strength as indicated by the declining debt to equity ratio. From late 2023 through mid-2025, debt began to rise again while equity declined modestly, resulting in increased leverage. This shift suggests a potential change in financing strategy or capital allocation priorities, requiring monitoring in future reporting periods.
Debt to Capital
Chevron Corp., debt to capital calculation (quarterly data)
| Jun 30, 2025 | 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. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-06-30), 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 Q2 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibits a fluctuating trend across the observed quarters. Initially, there is an increase from 32,351 million USD in the first quarter of 2020 to a peak of 44,315 million USD by the end of 2020. After this, a steady decline in total debt is observed throughout 2021 and continuing into 2022, reaching a low around 23,339 million USD at the end of 2022. The total debt remains relatively stable with slight decreases into early 2023, followed by minor variations up to mid-2024. From mid-2024 onward, there is an upward shift again, with total debt rising from approximately 24,541 million USD in the first quarter of 2025 to nearly 29,467 million USD by mid-2025.
- Total Capital
- Total capital shows moderate fluctuations but generally remains within a range of approximately 166,000 million to 183,000 million USD throughout the period. It starts near 176,281 million USD in early 2020, dips slightly below 170,000 million USD in late 2021, then climbs to a peak of around 182,621 million USD at the end of 2022. Following this peak, total capital maintains a relatively stable position around 179,000 to 182,000 million USD during 2023 and early 2024 but then experiences a slight downward trend starting in mid-2024 through mid-2025, ending near 175,884 million USD.
- Debt to Capital Ratio
- The debt to capital ratio reveals clear cyclical behavior reflecting changes in the underlying components. It shows an upward trend from 0.18 at the start of 2020 to a maximum of 0.26 by the first quarter of 2021, consistent with the rising total debt and relatively stable capital base during that time. Subsequently, the ratio declines significantly, falling to about 0.11 to 0.13 during 2022 and early 2023, indicating a reduction in leverage as debt levels decrease while capital remains steady or increases slightly. However, from mid-2024 onwards, the ratio experiences a gradual increase again, rising to 0.17 by mid-2025, driven primarily by the increasing debt levels during this latter period.
- Overall Insights
- The data suggests a strategic effort to deleverage from late 2020 through early 2023, as reflected in the decreasing total debt and debt to capital ratio. During this phase, the company managed to reduce financial leverage, potentially improving its risk profile. The stabilization and slight decline in total capital in recent quarters may reflect capital management activities or shifts in asset composition. The renewed increase in debt and leverage ratio starting in mid-2024 could indicate a change in financial strategy, possibly related to increased investments or other financing needs. Monitoring this trend will be critical to assess future financial stability and capital structure management.
Debt to Assets
Chevron Corp., debt to assets calculation (quarterly data)
| Jun 30, 2025 | 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. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-06-30), 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 Q2 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data over the examined periods reveals notable trends in debt management and asset base evolution. Total debt exhibited fluctuations with an overall decline from early 2020 through late 2023, followed by a modest increase starting in 2024. Total assets demonstrated a generally stable trend with minor variations, showing gradual growth up until early 2023 and slight decreases thereafter.
- Total Debt Trends
- Total debt started at approximately 32.4 billion US dollars in the first quarter of 2020, increased to a peak of around 44.3 billion by the end of 2020, then progressively declined to about 20.6 billion by the end of 2023. From early 2024 onwards, total debt rose again, reaching nearly 29.5 billion by mid-2025. This pattern indicates an initial increase possibly related to short-term financing needs or strategic investments, followed by a concerted effort to reduce leverage, before stabilizing and increasing slightly in the latest periods.
- Total Asset Trends
- Total assets were approximately 236.7 billion US dollars at the start of 2020, with some declines noted mid-2020 reaching a low near 223 billion. From late 2020 through early 2022, assets grew steadily, peaking close to 259.7 billion before experiencing a modest downward adjustment starting in 2023. By mid-2025, assets decreased to around 250.8 billion. This suggests a period of asset expansion possibly through acquisition or investment, followed by a stabilization or slight divestment phase.
- Debt to Assets Ratio Analysis
- The debt-to-assets ratio increased from 0.14 to a peak of 0.19 by early 2021, reflecting the increased debt levels relative to assets during that time. Subsequently, this ratio decreased consistently reaching a low of around 0.08 by late 2023, indicating improved leverage and a stronger asset base relative to debt. However, from 2024 onwards, the ratio increased again to approximately 0.12 by mid-2025, aligning with the observed rise in total debt. The fluctuations indicate a dynamic adjustment in the company’s capital structure, balancing debt utilization with asset growth.
Financial Leverage
Chevron Corp., financial leverage calculation (quarterly data)
| Jun 30, 2025 | 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. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-06-30), 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 Q2 2025 Calculation
Financial leverage = Total assets ÷ Total Chevron Corporation stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Assets
- Total assets fluctuated over the observed periods, starting at approximately $236.7 billion in March 2020 and showing a downward trend through June and September 2020. There was a recovery trend peaking around $259.7 billion in September 2022. After this peak, a gradual decline occurred towards the end of the series, with total assets decreasing to around $250.8 billion by June 2025. This indicates a period of asset growth followed by a measured reduction.
- Total Chevron Corporation Stockholders’ Equity
- Stockholders’ equity decreased initially from about $143.9 billion in March 2020 to approximately $131.7 billion by September and December 2020. Subsequently, equity showed a steady upward movement, reaching a peak near $165.3 billion in September 2023. After this peak, a consistent decline is observed, with equity dropping to around $146.4 billion by June 2025. The trend reflects an initial contraction, sustained growth, and a later reversal towards reduction in equity.
- Financial Leverage Ratio
- Financial leverage ratio started at 1.64 in March 2020 and increased to a high of 1.83 by March 2021, signaling increased reliance on debt financing in relation to equity. From mid-2021 onwards, the leverage ratio gradually decreased to a low of 1.59 in June 2023, indicating a reduction in leverage and potentially strengthening equity positions. In the latter periods, there is a slight upward trend in leverage, moving back up to 1.71 by June 2025. Overall, the leverage ratio exhibits a cyclical pattern with periods of increase followed by deleveraging and moderate subsequent rise.
Interest Coverage
Chevron Corp., interest coverage calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-06-30), 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 Q2 2025 Calculation
Interest coverage
= (EBITQ2 2025
+ EBITQ1 2025
+ EBITQ4 2024
+ EBITQ3 2024)
÷ (Interest expenseQ2 2025
+ Interest expenseQ1 2025
+ Interest expenseQ4 2024
+ Interest expenseQ3 2024)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT demonstrated significant volatility during the early quarters, with a notable negative spike in June 2020 (-10,425 million USD), followed by relatively low positive values through the end of 2020. Beginning in March 2021, EBIT showed a strong upward trend, peaking in June 2022 at 16,132 million USD. Subsequent quarters saw some fluctuations and a gradual decline with periods of decline and recovery, ultimately trending downward from June 2023 onwards. By June 2025, EBIT had reduced significantly to 4,421 million USD, illustrating a period of contraction after the mid-2022 peak.
- Interest and debt expense
- Interest and debt expense remained relatively stable over the entire period, fluctuating within a narrow range between 115 million USD and 274 million USD. The data indicates a slight increasing trend from 199 million USD at the end of 2020 to a higher 274 million USD by June 2025. This suggests that while the company maintained a consistent level of interest burden relative to its debt, there was a gradual increase in costs towards the latter part of the timeline.
- Interest coverage ratio
- The interest coverage ratio experienced severe negative values in late 2020, reflecting EBIT losses during that period. Starting in March 2021, the ratio improved dramatically, rising from a negative position to a very strong coverage ratio above 8 and continuing an upward trajectory peaking over 100 in the first half of 2022. Following this peak, the ratio gradually decreased but remained well above 20 through to June 2025. This demonstrates a considerable strengthening in the company’s ability to cover interest expenses through earnings post-2020, although this ability has softened moderately after reaching its peak.
- Summary
- The company experienced a turbulent financial period in 2020 with significant EBIT losses impacting profitability and interest coverage. From early 2021, both EBIT and interest coverage improved markedly, with EBIT peaking in mid-2022 and interest coverage reaching historic highs. However, following mid-2022, the company faced a downward trend in EBIT and interest coverage, suggesting reduced profitability and declining buffer to cover interest expenses, although coverage remains relatively strong. Meanwhile, interest and debt expenses showed a mild but consistent rise, indicating a potentially increasing cost of borrowing or higher debt levels over the reviewed period.