Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
ConocoPhillips, solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
The solvency profile of the entity is characterized by high stability in its capital structure and leverage ratios, contrasted by a notable downward trend in its ability to service interest expenses from its peak in late 2022.
- Capital Structure and Leverage Ratios
- Debt to equity, debt to capital, and debt to assets ratios exhibit minimal volatility over the analyzed period. The debt to equity ratio remained largely range-bound between 0.34 and 0.40, eventually stabilizing at 0.36. Similarly, the debt to capital ratio fluctuated narrowly between 0.25 and 0.29, while the debt to assets ratio stayed consistently between 0.18 and 0.20. These patterns indicate a disciplined approach to maintaining a conservative leverage position.
- Financial Leverage
- The financial leverage ratio demonstrates a steady state, oscillating within a tight corridor between 1.87 and 1.96. The lack of significant deviation in this metric suggests a consistent relationship between total assets and shareholder equity, reflecting a stable financing strategy.
- Interest Coverage Capacity
- A significant contraction is observed in the interest coverage ratio. After reaching a peak of 36.07 in December 2022, the ratio entered a sustained period of decline, reaching a low of 14.62 by March 2026. Although the ratio remains sufficiently high to ensure debt obligations are met, the downward trajectory represents a reduction in the margin of safety. A partial recovery to 19.32 is noted in the final quarter of the series.
Overall, the balance sheet remains robust with steady leverage metrics, although the declining trend in interest coverage suggests a shift in the relationship between operating profitability and interest obligations over the observed timeframe.
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Debt Ratios
Coverage Ratios
Debt to Equity
ConocoPhillips, debt to equity calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Short-term debt | 462) | 1,065) | 1,020) | 1,016) | 414) | 608) | 1,035) | 1,314) | 1,312) | 1,113) | 1,074) | 881) | 879) | 1,317) | 417) | 664) | 676) | 1,160) | ||||||
| Long-term debt | 22,828) | 22,262) | 22,424) | 22,466) | 23,115) | 23,176) | 23,289) | 16,990) | 17,040) | 17,304) | 17,863) | 18,182) | 15,565) | 15,266) | 16,226) | 16,297) | 16,295) | 17,586) | ||||||
| Total debt | 23,290) | 23,327) | 23,444) | 23,482) | 23,529) | 23,784) | 24,324) | 18,304) | 18,352) | 18,417) | 18,937) | 19,063) | 16,444) | 16,583) | 16,643) | 16,961) | 16,971) | 18,746) | ||||||
| Equity | 65,349) | 64,541) | 64,487) | 64,923) | 65,572) | 65,238) | 64,796) | 49,881) | 49,745) | 49,325) | 49,279) | 47,745) | 47,531) | 47,783) | 48,003) | 49,079) | 50,202) | 49,218) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to equity1 | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 | 0.38 | 0.37 | 0.37 | 0.37 | 0.38 | 0.40 | 0.35 | 0.35 | 0.35 | 0.35 | 0.34 | 0.38 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | 0.20 | 0.25 | 0.22 | 0.22 | 0.20 | 0.20 | 0.16 | 0.17 | 0.15 | 0.14 | 0.13 | 0.12 | 0.14 | 0.15 | 0.15 | 0.15 | 0.17 | 0.20 | ||||||
| Exxon Mobil Corp. | 0.16 | 0.19 | 0.17 | 0.16 | 0.15 | 0.14 | 0.16 | 0.16 | 0.16 | 0.20 | 0.20 | 0.21 | 0.21 | 0.21 | 0.21 | 0.24 | 0.26 | 0.28 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q2 2026 Calculation
Debt to equity = Total debt ÷ Equity
= 23,290 ÷ 65,349 = 0.36
2 Click competitor name to see calculations.
The analysis of solvency metrics indicates a stable capital structure characterized by a conservative debt-to-equity ratio over the analyzed period. While absolute levels of debt and equity experienced significant shifts, the relative proportions remained within a narrow range, suggesting a disciplined approach to leverage and capital management.
- Debt and Equity Trends
- Total debt exhibited a fluctuating trend, initially decreasing from $18.7 billion in March 2022 to a low of approximately $16.4 billion by June 2023. A significant increase is observed in December 2024, where debt rose to $24.3 billion, followed by a gradual moderation to $23.3 billion by June 2026. Parallel to this, equity remained relatively stable between $47 billion and $50 billion until December 2024, when it increased substantially to $64.8 billion and remained above $64 billion through the remainder of the period.
- Debt to Equity Ratio Analysis
- The debt-to-equity ratio remained low, oscillating between a minimum of 0.34 in June 2022 and a maximum of 0.40 in September 2023. The peak in September 2023 coincided with a temporary rise in total debt. Following the simultaneous expansion of both debt and equity in late 2024, the ratio stabilized and remained constant at 0.36 from March 2025 through June 2026.
- Solvency Implications
- The consistency of the ratio suggests a strategic balance in the capital structure. The significant increase in equity accompanying the rise in debt in December 2024 effectively offset the potential increase in financial risk, preventing a deterioration of the solvency profile. The stabilization of the ratio at 0.36 indicates a sustained commitment to maintaining a specific leverage target despite changes in the absolute size of the balance sheet.
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Debt to Capital
ConocoPhillips, debt to capital calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Short-term debt | 462) | 1,065) | 1,020) | 1,016) | 414) | 608) | 1,035) | 1,314) | 1,312) | 1,113) | 1,074) | 881) | 879) | 1,317) | 417) | 664) | 676) | 1,160) | ||||||
| Long-term debt | 22,828) | 22,262) | 22,424) | 22,466) | 23,115) | 23,176) | 23,289) | 16,990) | 17,040) | 17,304) | 17,863) | 18,182) | 15,565) | 15,266) | 16,226) | 16,297) | 16,295) | 17,586) | ||||||
| Total debt | 23,290) | 23,327) | 23,444) | 23,482) | 23,529) | 23,784) | 24,324) | 18,304) | 18,352) | 18,417) | 18,937) | 19,063) | 16,444) | 16,583) | 16,643) | 16,961) | 16,971) | 18,746) | ||||||
| Equity | 65,349) | 64,541) | 64,487) | 64,923) | 65,572) | 65,238) | 64,796) | 49,881) | 49,745) | 49,325) | 49,279) | 47,745) | 47,531) | 47,783) | 48,003) | 49,079) | 50,202) | 49,218) | ||||||
| Total capital | 88,639) | 87,868) | 87,931) | 88,405) | 89,101) | 89,022) | 89,120) | 68,185) | 68,097) | 67,742) | 68,216) | 66,808) | 63,975) | 64,366) | 64,646) | 66,040) | 67,173) | 67,964) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to capital1 | 0.26 | 0.27 | 0.27 | 0.27 | 0.26 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.28 | 0.29 | 0.26 | 0.26 | 0.26 | 0.26 | 0.25 | 0.28 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | 0.16 | 0.20 | 0.18 | 0.18 | 0.17 | 0.17 | 0.14 | 0.14 | 0.13 | 0.12 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.13 | 0.15 | 0.17 | ||||||
| Exxon Mobil Corp. | 0.14 | 0.16 | 0.14 | 0.14 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.16 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.20 | 0.21 | 0.22 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q2 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 23,290 ÷ 88,639 = 0.26
2 Click competitor name to see calculations.
The solvency profile exhibits a period of moderate fluctuation followed by a significant expansion in the balance sheet scale, while maintaining a remarkably consistent leverage ratio. Total debt experienced a gradual decline from early 2022 until mid-2023, followed by a sharp increase in late 2024, after which it stabilized.
- Total Debt Trajectory
- An initial reduction is observed from March 2022 to June 2023, with total debt decreasing from 18,746 million to 16,444 million. Following a period of relative stability, a substantial increase occurred in December 2024, where debt peaked at 24,324 million. From January 2025 through June 2026, debt levels remained stable, fluctuating within a narrow range between 23,290 million and 23,529 million.
- Total Capital Trends
- Total capital remained within a range of 63,975 million to 68,216 million from March 2022 through September 2024. A significant structural increase is noted in December 2024, when total capital rose to 89,120 million. This higher capital base was maintained through June 2026, concluding at 88,639 million.
- Debt to Capital Ratio Analysis
- The debt to capital ratio demonstrates high stability, fluctuating minimally between 0.25 and 0.29. The ratio peaked at 0.29 in September 2023 but remained consistently between 0.26 and 0.27 from December 2023 through June 2026. Notably, the sharp increase in absolute debt in December 2024 did not elevate the ratio, as it was offset by a proportional increase in total capital. This suggests a strategic maintenance of the capital structure despite the overall expansion of the balance sheet.
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Debt to Assets
ConocoPhillips, debt to assets calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Short-term debt | 462) | 1,065) | 1,020) | 1,016) | 414) | 608) | 1,035) | 1,314) | 1,312) | 1,113) | 1,074) | 881) | 879) | 1,317) | 417) | 664) | 676) | 1,160) | ||||||
| Long-term debt | 22,828) | 22,262) | 22,424) | 22,466) | 23,115) | 23,176) | 23,289) | 16,990) | 17,040) | 17,304) | 17,863) | 18,182) | 15,565) | 15,266) | 16,226) | 16,297) | 16,295) | 17,586) | ||||||
| Total debt | 23,290) | 23,327) | 23,444) | 23,482) | 23,529) | 23,784) | 24,324) | 18,304) | 18,352) | 18,417) | 18,937) | 19,063) | 16,444) | 16,583) | 16,643) | 16,961) | 16,971) | 18,746) | ||||||
| Total assets | 124,261) | 122,725) | 121,939) | 122,472) | 122,599) | 124,254) | 122,780) | 96,699) | 95,994) | 95,348) | 95,924) | 93,651) | 89,605) | 91,441) | 93,829) | 94,837) | 93,693) | 93,308) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to assets1 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.20 | 0.19 | 0.19 | 0.19 | 0.20 | 0.20 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.20 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | 0.11 | 0.14 | 0.13 | 0.13 | 0.12 | 0.12 | 0.10 | 0.10 | 0.09 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.12 | ||||||
| Exxon Mobil Corp. | 0.09 | 0.10 | 0.10 | 0.09 | 0.09 | 0.08 | 0.09 | 0.09 | 0.09 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q2 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 23,290 ÷ 124,261 = 0.19
2 Click competitor name to see calculations.
The solvency profile demonstrates significant stability over the observed period from March 2022 through June 2026. Despite substantial fluctuations in the absolute values of both liabilities and assets, the proportional relationship between total debt and total assets remained remarkably consistent, oscillating within a narrow range between 0.18 and 0.20.
- Total Debt Trends
- Debt levels exhibited a gradual decline from March 2022 to June 2023, reaching a period low of 16,444 million USD. A moderate increase occurred in late 2023, followed by a period of relative stability around 18,300 million USD. A significant escalation is observed in December 2024, where total debt rose to 24,324 million USD, subsequently stabilizing around 23,290 million USD by mid-2026.
- Total Asset Dynamics
- Assets remained relatively stable between 89,605 million USD and 96,699 million USD for the first two and a half years of the period. A substantial increase occurred in December 2024, with assets rising to 122,780 million USD. This elevated asset base was maintained through June 2026, peaking at 124,261 million USD.
- Debt to Assets Ratio Analysis
- The debt to assets ratio indicates a disciplined approach to leverage. The ratio decreased from 0.20 in early 2022 to 0.18 by mid-2023. Following a brief return to 0.20 in late 2023, the ratio converged and remained steady at 0.19 from March 2024 through June 2026. The simultaneous increase in both total debt and total assets in December 2024 suggests a strategic expansion or acquisition that was funded in a manner consistent with the existing capital structure, thereby preserving the overall solvency ratio.
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Financial Leverage
ConocoPhillips, financial leverage calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Total assets | 124,261) | 122,725) | 121,939) | 122,472) | 122,599) | 124,254) | 122,780) | 96,699) | 95,994) | 95,348) | 95,924) | 93,651) | 89,605) | 91,441) | 93,829) | 94,837) | 93,693) | 93,308) | ||||||
| Equity | 65,349) | 64,541) | 64,487) | 64,923) | 65,572) | 65,238) | 64,796) | 49,881) | 49,745) | 49,325) | 49,279) | 47,745) | 47,531) | 47,783) | 48,003) | 49,079) | 50,202) | 49,218) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Financial leverage1 | 1.90 | 1.90 | 1.89 | 1.89 | 1.87 | 1.90 | 1.89 | 1.94 | 1.93 | 1.93 | 1.95 | 1.96 | 1.89 | 1.91 | 1.95 | 1.93 | 1.87 | 1.90 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | 1.74 | 1.79 | 1.74 | 1.72 | 1.71 | 1.72 | 1.69 | 1.66 | 1.64 | 1.63 | 1.63 | 1.60 | 1.59 | 1.60 | 1.62 | 1.64 | 1.68 | 1.70 | ||||||
| Exxon Mobil Corp. | 1.79 | 1.83 | 1.73 | 1.74 | 1.70 | 1.72 | 1.72 | 1.72 | 1.72 | 1.84 | 1.84 | 1.86 | 1.82 | 1.86 | 1.89 | 1.99 | 2.07 | 2.10 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q2 2026 Calculation
Financial leverage = Total assets ÷ Equity
= 124,261 ÷ 65,349 = 1.90
2 Click competitor name to see calculations.
The financial leverage profile exhibits a high degree of stability over the observed period, despite a significant expansion in the overall balance sheet scale starting in the fourth quarter of 2024.
- Balance Sheet Scale and Expansion
- Total assets remained relatively consistent, fluctuating between US$ 89.6 billion and US$ 96.7 billion from March 2022 through September 2024. A substantial increase is observed on December 31, 2024, where assets rose to US$ 122.8 billion, subsequently stabilizing between US$ 121.9 billion and US$ 124.3 billion through June 2026. This growth is mirrored by equity, which remained near US$ 49 billion for most of 2022 and 2023 before increasing to US$ 64.8 billion by December 31, 2024, and remaining above US$ 64 billion thereafter.
- Financial Leverage Ratio Trends
- The financial leverage ratio demonstrates minimal volatility, operating within a narrow band between 1.87 and 1.96. The ratio reached its peak of 1.96 in September 2023 and its minimum of 1.87 in June 2022 and June 2025. The consistency of this ratio over several years indicates a disciplined and controlled approach to the company's capital structure.
- Analysis of Capital Structure Stability
- A notable observation is the maintenance of the leverage ratio during the abrupt balance sheet expansion in late 2024. Despite the increase in total assets by approximately US$ 26 billion in a single quarter, the leverage ratio moved slightly from 1.94 in September 2024 to 1.89 in December 2024. This implies that the increase in assets was funded proportionally by an increase in equity, preventing any spike in financial risk or over-leveraging.
In summary, the solvency position remains robust and consistent. The ability to scale the asset base significantly while keeping the financial leverage ratio virtually unchanged suggests a strategic alignment between asset growth and equity financing, ensuring that the company's risk profile remains stable.
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Interest Coverage
ConocoPhillips, interest coverage calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income | 3,931) | 2,183) | 1,442) | 1,726) | 1,971) | 2,849) | 2,306) | 2,059) | 2,329) | 2,551) | 3,007) | 2,798) | 2,232) | 2,920) | 3,249) | 4,527) | 5,145) | 5,759) | ||||||
| Add: Income tax expense | 2,151) | 1,180) | 803) | 1,202) | 1,046) | 1,617) | 664) | 1,176) | 1,330) | 1,257) | 1,257) | 1,302) | 1,130) | 1,642) | 1,986) | 2,913) | 2,510) | 2,139) | ||||||
| Add: Interest and debt expense | 182) | 198) | 195) | 223) | 232) | 205) | 191) | 189) | 198) | 205) | 219) | 194) | 179) | 188) | 178) | 199) | 211) | 217) | ||||||
| Earnings before interest and tax (EBIT) | 6,264) | 3,561) | 2,440) | 3,151) | 3,249) | 4,671) | 3,161) | 3,424) | 3,857) | 4,013) | 4,483) | 4,294) | 3,541) | 4,750) | 5,413) | 7,639) | 7,866) | 8,115) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Interest coverage1 | 19.32 | 14.62 | 15.80 | 16.72 | 17.75 | 19.30 | 18.46 | 19.45 | 20.40 | 20.49 | 21.88 | 24.35 | 28.69 | 33.08 | 36.07 | 33.30 | 28.10 | 22.60 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | 22.46 | 14.41 | 17.22 | 21.10 | 27.24 | 37.58 | 47.31 | 49.42 | 59.46 | 60.29 | 64.08 | 77.06 | 87.36 | 102.29 | 97.27 | 86.49 | 68.50 | 44.87 | ||||||
| Exxon Mobil Corp. | 59.52 | 53.86 | 69.44 | 59.41 | 53.86 | 50.09 | 50.07 | 52.17 | 54.97 | 54.07 | 63.17 | 74.98 | 85.62 | 108.93 | 94.68 | 88.00 | 68.10 | 42.27 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q2 2026 Calculation
Interest coverage
= (EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025)
÷ (Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025)
= (6,264 + 3,561 + 2,440 + 3,151)
÷ (182 + 198 + 195 + 223)
= 19.32
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The financial performance indicates a general contraction in interest coverage capacity from early 2022 through early 2026, although the solvency margin remains substantially above critical levels throughout the entire period.
- Earnings Before Interest and Tax (EBIT) Trends
- A pronounced downward trajectory in operating earnings is observed, with EBIT decreasing from a peak of 8,115 million US$ in March 2022 to a period low of 2,440 million US$ in December 2025. This decline was characterized by significant volatility, followed by a sharp recovery in the final period, reaching 6,264 million US$ by June 30, 2026.
- Interest and Debt Expense Stability
- Interest and debt expenses remained relatively consistent, fluctuating within a narrow range between 178 million US$ and 232 million US$. The lack of substantial variance in these costs suggests a stable debt structure and a consistent interest burden regardless of the fluctuations in operating income.
- Interest Coverage Ratio Dynamics
- The interest coverage ratio experienced an initial increase, peaking at 36.07 in December 2022. This was followed by a prolonged period of decline, with the ratio falling to 14.62 by March 2026. Because interest expenses remained stable, this compression was driven almost exclusively by the reduction in EBIT. A reversal of this trend is noted in the final quarter, where the ratio improved to 19.32, coinciding with the rebound in operating earnings.
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