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: 2026-03-31), 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 overall solvency profile demonstrates a high degree of stability in capital structure and leverage, contrasted by a progressive decline in interest coverage capabilities over the analyzed period.
- Capital Structure and Debt Ratios
- Debt to equity, debt to capital, and debt to assets ratios remained remarkably consistent between March 2022 and March 2026. The debt to equity ratio fluctuated within a narrow band, starting at 0.38, reaching a peak of 0.40 in September 2023, and stabilizing at 0.36 by the end of the period. Similarly, the debt to capital ratio maintained a steady state, largely hovering between 0.26 and 0.28, while the debt to assets ratio remained constant at approximately 0.19 for the majority of the timeline. These patterns indicate a disciplined approach to maintaining a conservative balance sheet.
- Financial Leverage
- Financial leverage exhibited minimal volatility, oscillating between a low of 1.87 and a peak of 1.96 in September 2023. The ratio closed the period at 1.90, suggesting that the company has not significantly altered its reliance on debt to finance its assets over the four-year span.
- Interest Coverage Trends
- A significant downward trend is observed in the interest coverage ratio. After reaching a peak of 36.07 in December 2022, the ratio entered a sustained decline, falling to 21.88 by December 2023 and continuing to decrease to 14.62 by March 2026. While the absolute value remains high—indicating a strong ability to meet interest obligations—the consistent quarter-over-quarter erosion suggests either increasing interest expenses or a reduction in operating income relative to debt service requirements.
In summary, while the structural solvency ratios indicate a stable and low-risk capital composition, the diminishing interest coverage ratio represents the most notable change in the financial profile, signaling a reduction in the margin of safety for debt servicing over time.
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Debt Ratios
Coverage Ratios
Debt to Equity
ConocoPhillips, debt to equity calculation (quarterly data)
| 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 | 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 | 22,262) | 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 | 23,327) | 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 | 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 | 0.38 | 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. | 0.25 | 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. | 0.19 | 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: 2026-03-31), 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 Q1 2026 Calculation
Debt to equity = Total debt ÷ Equity
= 23,327 ÷ 64,541 = 0.36
2 Click competitor name to see calculations.
The analysis of the solvency profile reveals a period of overall stability and a conservative approach to capital structure. Despite fluctuations in the absolute values of debt and equity, the proportionality between liabilities and shareholder funds remained consistent throughout the observed period.
- Debt to Equity Ratio Trends
- The debt to equity ratio exhibited minimal volatility, fluctuating within a tight range between 0.34 and 0.40. A peak of 0.40 was observed in September 2023, representing the highest level of leverage in the period. Subsequently, the ratio stabilized, converging to a consistent 0.36 from December 2024 through March 2026.
- Capital Structure Dynamics
- A significant expansion of the balance sheet occurred in December 2024, where total debt increased to 24,324 million and equity rose to 64,796 million. The simultaneous increase in both components suggests a strategic capital event or restructuring that expanded the company's asset base without negatively impacting the solvency ratio, which remained at 0.38 during that quarter.
- Debt and Equity Trajectories
- Total debt showed a gradual decline from March 2022 to June 2023, followed by a period of fluctuation before the sharp increase in late 2024. Following this peak, a steady downward trend in debt is observed through March 2026. Concurrently, equity remained relatively flat until the December 2024 surge, after which it maintained a higher plateau around 64,000 million, contributing to the stabilization of the solvency ratio at 0.36.
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Debt to Capital
ConocoPhillips, debt to capital calculation (quarterly data)
| 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 | 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 | 22,262) | 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 | 23,327) | 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 | 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 | 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 | 0.27 | 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. | 0.20 | 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. | 0.16 | 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: 2026-03-31), 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 Q1 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 23,327 ÷ 87,868 = 0.27
2 Click competitor name to see calculations.
The solvency profile demonstrates a high degree of stability in the debt-to-capital ratio over the observed period, despite significant fluctuations in the absolute values of total debt and total capital.
- Total Debt Trends
- A gradual reduction in total debt occurred throughout 2022, declining from 18,746 million USD in March to 16,643 million USD by December. This downward trajectory persisted into the first half of 2023 before a moderate increase was recorded in September 2023, reaching 19,063 million USD. A significant escalation is observed in December 2024, where total debt rose to 24,324 million USD, followed by a period of stabilization between 23,327 million USD and 23,784 million USD through March 2026.
- Total Capital Fluctuations
- Total capital exhibited a slight contraction during 2022 and the first half of 2023, reaching a minimum of 63,975 million USD in June 2023. This was followed by a growth phase that culminated in a sharp increase in December 2024 to 89,120 million USD. From January 2025 through March 2026, total capital remained relatively constant, fluctuating within a narrow range between 87,868 million USD and 89,101 million USD.
- Debt to Capital Ratio Analysis
- The debt-to-capital ratio remained remarkably consistent, fluctuating within a tight range of 0.25 to 0.29. A low of 0.25 was noted in June 2022, while the peak of 0.29 occurred in September 2023. From March 2024 onward, the ratio stabilized at 0.27, maintaining this level with negligible variance through March 2026. This indicates that the substantial increase in debt observed in late 2024 was balanced by a proportional increase in total capital, thereby preserving the company's overall solvency structure.
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Debt to Assets
ConocoPhillips, debt to assets calculation (quarterly data)
| 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 | 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 | 22,262) | 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 | 23,327) | 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 | 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 | 0.20 | 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. | 0.14 | 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. | 0.10 | 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: 2026-03-31), 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 Q1 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 23,327 ÷ 122,725 = 0.19
2 Click competitor name to see calculations.
The solvency profile of the organization exhibits remarkable stability over the analyzed period, characterized by a consistent relationship between total debt and total assets despite significant fluctuations in absolute values.
- Debt and Asset Trajectories
- Total debt experienced a gradual decline from March 2022 through June 2023, reaching a low of 16,444 million US$. This was followed by a period of relative stability around 18 billion US$ until December 2024, when a substantial increase to 24,324 million US$ was recorded. Parallel to this, total assets remained steady near 90-96 billion US$ until December 2024, where a sharp increase to 122,780 million US$ occurred, suggesting a major capital expansion or acquisition event.
- Debt to Assets Ratio Analysis
- The debt to assets ratio remained within a very narrow corridor, fluctuating between 0.18 and 0.20. The ratio dipped to 0.18 between June 2022 and June 2023, subsequently rising to 0.20 in late 2023. Despite the significant surge in both debt and assets in December 2024, the ratio only peaked momentarily at 0.20 before settling at 0.19 for the remainder of the period ending March 2026.
- Solvency Implications
- The consistency of the ratio indicates a disciplined approach to leverage. The simultaneous increase in debt and assets in late 2024 demonstrates that the growth in the asset base far outweighed the increase in borrowing, thereby preventing any degradation of the solvency position. The maintenance of the ratio at approximately 0.19 suggests a strategic target for capital structure optimization.
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Financial Leverage
ConocoPhillips, financial leverage calculation (quarterly data)
| 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 | 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 | 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 | 1.89 | 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. | 1.79 | 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. | 1.83 | 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: 2026-03-31), 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 Q1 2026 Calculation
Financial leverage = Total assets ÷ Equity
= 122,725 ÷ 64,541 = 1.90
2 Click competitor name to see calculations.
An analysis of the solvency metrics from March 31, 2022, through March 31, 2026, reveals a period of remarkable stability in financial leverage despite a significant expansion of the balance sheet in late 2024.
- Total Asset Trends
- Total assets remained relatively stable between March 2022 and September 2024, fluctuating within a narrow range of approximately 89.6 billion to 96.7 billion US dollars. A substantial increase occurred on December 31, 2024, where assets rose to 122.78 billion US dollars, representing a significant expansion in the company's asset base. Following this spike, assets stabilized around the 122 billion US dollar mark through the first quarter of 2026.
- Equity Dynamics
- Shareholders' equity exhibited a similar pattern to total assets, maintaining a consistent level between 47.5 billion and 49.9 billion US dollars from early 2022 until September 2024. A sharp increase was recorded on December 31, 2024, with equity rising to 64.8 billion US dollars. This growth persisted into 2025 and 2026, with equity stabilizing between 64.4 billion and 65.6 billion US dollars.
- Financial Leverage Ratio Analysis
- The financial leverage ratio remained highly consistent throughout the entire reporting period, oscillating within a tight range between 1.87 and 1.96. Despite the sharp increase in both total assets and equity at the end of 2024, the ratio shifted only marginally from 1.94 in September 2024 to 1.89 in December 2024. This indicates that the expansion of the balance sheet was executed proportionally, with the growth in assets being matched by a corresponding increase in equity, thereby preventing any significant escalation in financial risk or reliance on external debt.
The overall trend suggests a disciplined approach to capital structure management. The ability to maintain a leverage ratio of approximately 1.90 while increasing the balance sheet size by nearly 30% underscores a strategic scaling of operations that preserved the company's solvency profile.
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Interest Coverage
ConocoPhillips, interest coverage calculation (quarterly data)
| 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 | 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 | 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 | 198) | 195) | 223) | 232) | 205) | 191) | 189) | 198) | 205) | 219) | 194) | 179) | 188) | 178) | 199) | 211) | 217) | ||||||
| Earnings before interest and tax (EBIT) | 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 | 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. | 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. | 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: 2026-03-31), 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 Q1 2026 Calculation
Interest coverage
= (EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025)
÷ (Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025)
= (3,561 + 2,440 + 3,151 + 3,249)
÷ (198 + 195 + 223 + 232)
= 14.62
2 Click competitor name to see calculations.
The interest coverage ratio exhibits a cyclical trajectory characterized by a sharp increase in 2022 followed by a sustained long-term decline through early 2026. Although the ratio remains well above the critical threshold of 1.0, indicating a continued ability to meet interest obligations, the margin of safety has narrowed significantly over the analyzed period.
- Earnings Before Interest and Tax (EBIT) Trends
- Earnings showed significant volatility and a general downward trajectory. Starting at 8,115 million USD in March 2022, EBIT reached a period of contraction, hitting a low of 3,151 million USD in June 2025. Despite intermittent recoveries—most notably in March 2025 where earnings rose to 4,671 million USD—the overall trend reflects a reduction in operational profitability compared to the 2022 peak.
- Interest and Debt Expense Stability
- Debt servicing costs remained relatively stable throughout the observed timeframe. Expenses fluctuated within a narrow band, ranging from a minimum of 178 million USD in December 2022 to a maximum of 232 million USD in June 2025. This stability suggests a consistent debt structure and a lack of significant new high-interest borrowing or drastic refinancing events.
- Interest Coverage Ratio Analysis
- The interest coverage ratio peaked at 36.07 in December 2022, reflecting a period of high earnings relative to debt costs. From that point, a consistent downward trend is observed, with the ratio falling to 14.62 by March 2026. Because interest expenses remained stable, this deterioration in the solvency ratio is almost exclusively attributable to the decline in EBIT. The gradual compression of the ratio indicates a weakening capacity to absorb potential operational losses while maintaining debt payments.
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