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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- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Solvency Ratios (Summary)
ConocoPhillips, 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).
The financial ratios exhibit notable trends over the period analyzed. The debt-related ratios—debt to equity, debt to capital, and debt to assets—show a general decline from 2020 through mid-2022, followed by relative stability with minor fluctuations thereafter. This downward trend suggests a progressive reduction in leverage or an increase in equity and asset base relative to debt during the earlier periods.
Specifically, the debt to equity ratio decreased from around 0.48-0.51 in early 2020 to approximately 0.34-0.35 by mid-2022, with a slight rise and stabilization near 0.36-0.40 in subsequent quarters. The debt to capital ratio followed a similar pattern, reducing from about 0.32-0.34 to near 0.25-0.26 by mid-2022, and then maintaining levels around 0.26-0.29 in later periods. The debt to assets ratio also declined steadily from 0.23-0.25 early on to roughly 0.18 by mid-2022, after which it oscillated modestly around 0.18-0.20.
The financial leverage ratio declined from just above 2.0 in early 2020 to a low near 1.87-1.89 during mid-2022, with slight increases to around 1.9-1.96 observed in recent quarters. This indicates a reduction in the extent to which the company’s assets are financed by debt, implying a moderately more conservative capital structure over time.
Interest coverage demonstrated significant improvement, particularly from late 2020 onward. Initially marked by a negative coverage of -2.9 in December 2020, this ratio rose substantially to over 36 by late 2022, indicating a strong increase in the company’s ability to meet interest obligations from earnings. Although the ratio gradually declined from its peak, it remained robust above 17 through the most recent quarters, reflecting sustained strong earnings relative to interest expenses.
Overall, the trends suggest a deliberate deleveraging strategy during the early periods, stabilization of leverage ratios subsequently, and a marked enhancement in interest coverage. This pattern may point to improved financial stability and creditworthiness with ample capacity to service debt over the analyzed timeframe.
- Debt to Equity
- Decreased from 0.48-0.51 in early 2020 to around 0.34-0.35 by mid-2022; stabilized near 0.36-0.40 afterward.
- Debt to Capital
- Fell from about 0.32-0.34 in early 2020 to 0.25-0.26 by mid-2022; maintained a range of 0.26-0.29 subsequently.
- Debt to Assets
- Gradually reduced from 0.23-0.25 to approximately 0.18 by mid-2022, with minor fluctuations around 0.18-0.20 thereafter.
- Financial Leverage
- Declined from just above 2.0 to near 1.87-1.89 by mid-2022; recent values reflect slight increases to approximately 1.9-1.96.
- Interest Coverage
- Improved dramatically from negative territory (-2.9) in late 2020 to a peak above 36 by late 2022; remained strong above 17 thereafter despite a gradual decline.
Debt Ratios
Coverage Ratios
Debt to Equity
ConocoPhillips, 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 | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Common stockholders’ equity | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||||||||||
| 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 ÷ Common stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt level showed a moderate increase from March 2020 through December 2021, rising from approximately $14.97 billion to nearly $19.93 billion. This was followed by a notable decline through 2022, reaching a low near $16.64 billion by year-end. However, starting in early 2023, total debt fluctuated, increasing again to about $19.06 billion by September 2023 before gradually decreasing towards the end of the period. A significant jump occurred at the beginning of 2025, where debt increased sharply to above $24 billion, slightly tapering but remaining elevated thereafter.
- Common Stockholders’ Equity
- Common equity increased consistently from the end of 2020, reaching more than $49 billion by early 2022. This upward trend continued steadily through 2023 and into 2024, culminating in equity levels exceeding $49.8 billion. In early 2025, equity experienced a substantial rise, jumping to approximately $64.8 billion and maintaining this higher level through mid-2025. Overall, equity demonstrated a strong, sustained growth trajectory over the observed period.
- Debt to Equity Ratio
- The debt to equity ratio followed a downward trend from early 2020 to the end of 2021, decreasing from about 0.48 to 0.44 and then further declining to approximately 0.35 by late 2022. This ratio stabilized around 0.35 to 0.37 during 2023 and most of 2024, indicating a more balanced capital structure with relatively lower leverage. However, a modest increase to around 0.38 is observed in early 2025 before slightly easing again. Despite fluctuations in debt and equity individually, the ratio reflects a general reduction in leverage over the medium term, with a temporary increase near the end of the data series.
- Overall Observations
- The financial data indicate a strategic reduction of total debt during 2022, coupled with continuous growth in equity, resulting in improved leverage ratios. The sharp increase in total debt and equity in early 2025 suggests significant changes in capital structure, possibly due to new financing activities or changes in asset valuations. The stable debt to equity ratio through most of 2023 and 2024 implies controlled balance sheet management during that period. Investors and analysts might consider the implications of the recent rise in debt and equity on financial risk and returns.
Debt to Capital
ConocoPhillips, debt to capital calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Short-term debt | |||||||||||||||||||||||||||||
| Long-term debt | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Common stockholders’ equity | |||||||||||||||||||||||||||||
| Total capital | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||||||||||
| 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.
The analysis of the quarterly financial data reveals several notable trends in the company's debt and capital structure over the observed periods.
- Total Debt
- Total debt showed an initial increase from $14,973 million in the first quarter of 2020 to a peak around $20,027 million by March 2021. This period was characterized by a relatively high debt level compared to the start of 2020. Subsequently, total debt exhibited a downward trend through 2022 and early 2023, falling to approximately $16,444 million by the end of 2023. However, there was a resurgence in debt levels beginning in early 2024, rising sharply to reach over $24,000 million by mid-2025. Overall, total debt appears to have fluctuated notably, with a significant increase followed by reduction and then a recent marked increase towards the latest quarters.
- Total Capital
- Total capital started at around $46,288 million in Q1 2020 and experienced a pronounced increase throughout 2021, reaching a high above $65,000 million. The upward trend continued moderately through 2022 and 2023, maintaining levels near or above $64,000 million. In 2024, capital levels rose dramatically, peaking close to $89,000 million by mid-2025. The overall trajectory for total capital is upward with some stabilization in the mid-range years and a strong increase in the final periods analyzed.
- Debt to Capital Ratio
- The debt to capital ratio began around 0.32 to 0.34 in 2020, indicating that debt constituted roughly one-third of the company's capital structure during that period. The ratio declined steadily from 2021 into 2022, reaching lows near 0.25 to 0.26, suggesting an improvement in leverage and a stronger equity or capital base relative to debt. The ratio then stabilized near 0.26 from 2022 through 2023. In 2024 and 2025, despite elevated debt and capital amounts, the debt to capital ratio remained relatively flat around 0.26 to 0.27, indicating that the increases in debt and capital were proportionate, maintaining a consistent leverage level.
In summary, the financial data indicate that the company initially increased its debt levels significantly, then reduced them while total capital increased steadily. The leverage ratio improved during this period, reflecting a more balanced capital structure. Recent quarters demonstrate a simultaneous rise in both debt and total capital, keeping the leverage ratio stable. This suggests deliberate capital management maintaining a consistent debt proportion despite larger absolute values in both debt and capital.
Debt to Assets
ConocoPhillips, debt to assets calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Short-term debt | |||||||||||||||||||||||||||||
| Long-term debt | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||||||||||
| 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 analysis of the financial data reveals several notable trends in the company's leverage and asset base over the observed periods.
- Total Debt
- The total debt remained relatively stable in the early periods from March 2020 to December 2020, fluctuating slightly around approximately US$15 billion. There was a significant increase in debt from March 2021, peaking around US$20 billion in the middle of 2021. Following this peak, debt levels declined steadily through 2022 and into 2023, reaching a low point near US$16.4 billion by the end of 2023. However, starting in early 2024, total debt rose sharply again, reaching new highs above US$24 billion by mid-2025. This pattern indicates episodes of increased borrowing possibly related to operational or investment activities, followed by periods of deleveraging and then renewed debt accumulation.
- Total Assets
- Total assets exhibited moderate volatility in the initial periods, with an increase from approximately US$65 billion in early 2020 to over US$90 billion by the end of 2021. The asset base remained broadly within the US$90 billion to US$96 billion range throughout 2022 and 2023, showing a stable asset base during these years. Beginning in 2024, assets increased markedly, reaching trend levels above US$122 billion by mid-2025. The sustained growth in total assets in the later periods suggests expansion or acquisition activity, or revaluation of existing assets.
- Debt to Assets Ratio
- The debt to assets ratio experienced a mild decline from about 0.23-0.25 in early 2020 to approximately 0.18 by the end of 2022 and through most of 2023, indicating a reduction in leverage relative to the asset base. Despite the increase in total assets, the ratio remained stable at this lower level, reflecting effective management of debt relative to asset growth. However, with the sharp rise in total debt and assets in 2024 and 2025, the ratio increased slightly back to around 0.19-0.20, signaling a moderate rise in leverage but still maintaining a relatively conservative capital structure overall.
In summary, the company demonstrated a dynamic financial posture with periods of increased leverage followed by deleveraging, along with steady growth in its asset base, particularly notable from 2024 onwards. Management appears to balance debt levels sensitively against asset growth, maintaining a stable and moderate debt to assets ratio despite fluctuations in absolute debt levels.
Financial Leverage
ConocoPhillips, financial leverage calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Common stockholders’ equity | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Financial leverage1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||||||||||
| 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 ÷ Common stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial data reveals distinct trends in the company's asset base, equity position, and financial leverage over the periods observed.
- Total assets
- The total assets exhibited moderate fluctuations initially, decreasing slightly from approximately 65 billion USD in early 2020 to around 62.6 billion USD by the end of 2020. Subsequently, there was a notable increase starting in the first quarter of 2021, with total assets rising to over 90 billion USD by the end of that year. This upward trajectory continued moderately through 2022 and 2023, maintaining values in the 93 to 96 billion USD range. A significant surge occurred in 2025, where total assets jumped sharply to over 120 billion USD, indicating an expansion phase or major asset acquisition during this period.
- Common stockholders’ equity
- Equity followed a generally similar pattern to total assets, starting around 31.3 billion USD in early 2020 and decreasing slightly through the latter part of 2020. During 2021, equity saw a marked increase, approaching 45 billion USD and continuing to rise steadily to nearly 50 billion USD by the close of 2022. During 2023 and early 2024, equity levels stabilized in the mid to high 47 billion USD range before another significant jump was noted in 2025. Equity increased to approximately 65 billion USD, reflecting either retained earnings accumulation, capital infusion, or revaluation effects corresponding with the asset growth in the same period.
- Financial leverage
- The financial leverage ratio demonstrated a gradual decreasing trend over the entire period, moving from just above 2.0 at the start of 2020 to about 1.87 by mid-2025. This steady decline suggests the company has been slowly reducing its reliance on debt relative to equity, improving its capital structure stability. The slight fluctuations within this reducing trend indicate periodic adjustments but maintain an overall direction of deleveraging.
In summary, the company's assets and equity have shown periods of stability followed by substantial growth, particularly notable in 2025. Concurrently, the financial leverage ratio has declined, suggesting a strategic focus on strengthening the equity base and reducing debt exposures relative to equity. This financial profile indicates improved balance sheet robustness and a potentially stronger financial position heading into future periods.
Interest Coverage
ConocoPhillips, 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 ConocoPhillips | |||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||||||||||
| 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 values display considerable volatility initially, with negative figures in the first two quarters of 2020, suggesting operational challenges likely influenced by external factors during that period. From the second quarter of 2021 onward, there is a noticeable upward trend peaking in the first quarter of 2022 at 8,115 million USD, which likely signals robust operational performance or recovery. Following this peak, a gradual decline ensues, with EBIT values reducing steadily through 2022 and 2023, stabilizing around the 3,000 to 4,000 million USD range in the most recent quarters. This pattern indicates that while operational earnings remain positive and substantial, growth momentum has slowed after the initial ramp-up.
- Interest and debt expense
- Interest and debt expense figures are relatively stable over the observed periods, fluctuating mildly around the 190 to 220 million USD range. There is a slight downward trend from 2020 through 2022, reaching a low point near 178 million USD in late 2022, suggesting possible reductions in debt levels or refinancing at more favorable rates. However, from early 2023 onwards, the expense reverts to a slightly higher range, with some quarter-to-quarter variation but no significant increasing or decreasing trend, indicating consistent debt-related costs without major changes in debt structure or interest rates.
- Interest coverage ratio
- The interest coverage ratio exhibits a significant improvement over time. Initially, in 2020, the ratio is negative or very low, reflecting insufficient earnings to cover interest expenses. From the first quarter of 2021, a marked increase is observed, with the ratio rising to 4.77 and further climbing sharply through 2021 and 2022, peaking at 36.07. This suggests a substantial improvement in the company's ability to service its debt through operational earnings. Following the peak, the ratio trends downward gradually but remains comfortably above 17 in the most recent quarters, indicating a continued strong capacity to meet interest obligations despite the modest reduction in EBIT.
- Overall analysis
- The financial performance over the periods analyzed reflects a recovery and strengthening phase after initial volatility and negative earnings in early 2020. The company demonstrated significant operational improvement leading to record EBIT in early 2022, followed by a moderate decrease but stable profitability. Interest expenses remain manageable and fairly constant, while the interest coverage ratio displays a clear sign of enhanced financial health with robust earnings relative to debt obligations. The trends suggest effective operational management and control over financial costs, although recent quarters indicate a slowdown in earnings growth that should be monitored.