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
- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Price to Operating Profit (P/OP) since 2005
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Solvency Ratios (Summary)
National Oilwell Varco Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
- Debt to Equity
- The debt to equity ratio remained very low and stable from March 2011 through June 2012, starting at 0.04 and staying near 0.03. It then experienced a noticeable increase from June 2012, peaking at 0.21 in March 2013. Subsequently, the ratio fluctuated moderately around 0.14 to 0.24 through 2015 and mid-2016, indicating a gradual but controlled rise in leverage over the observed periods.
- Debt to Capital
- Similar to debt to equity, the debt to capital ratio held steady at about 0.03 through early 2012. This was followed by a marked increase in mid-2012, reaching a high of 0.17 in March 2013 before declining slightly to around 0.12 by the end of 2013. Through 2014 to mid-2016, the ratio showed minor variability, settling generally between 0.13 and 0.19, suggesting a consistent level of capital structure leverage.
- Debt to Assets
- The debt to assets ratio started at a low level of 0.03 in early 2011 and stayed subdued until mid-2012. From that point, it rose to a peak of 0.13 in the first quarter of 2013. Afterward, the ratio decreased slightly and stabilized around 0.09 during 2013 and 2014, with a moderate increase later to a range of 0.13 to 0.15 in 2015 and 2016, indicating a modest increase in liabilities relative to total assets.
- Financial Leverage
- This ratio showed a gradual upward trend over the entire timeframe. Beginning near 1.42 in March 2011, it increased slowly to a peak of 1.7 in early 2015. After this peak, the ratio decreased gradually to 1.48 by mid-2016. The trend implies a modest increase in the use of debt over equity, followed by a slight de-leveraging phase.
- Interest Coverage
- Data for interest coverage is missing for the early periods but became available from December 2011. Initially, interest coverage was very strong, peaking near 100.5 in September 2012. This reflects a substantial ability to cover interest expenses. However, from 2013 onward, the ratio declined steadily, reaching negative values by mid-2015 and continuing to decrease through mid-2016, which signals deteriorating earnings relative to interest obligations and potential distress in meeting debt servicing requirements.
Debt Ratios
Coverage Ratios
Debt to Equity
National Oilwell Varco Inc., debt to equity calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current portion of long-term debt and short-term borrowings | |||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Total Company stockholders’ equity | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
| Schlumberger Ltd. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Debt to equity = Total debt ÷ Total Company stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total debt
- Over the observed period, total debt exhibits significant fluctuations. Initially, debt decreases from 715 million USD in March 2011 to about 510 million USD by December 2011. However, starting in the first quarter of 2012, debt escalates markedly, reaching a peak of 4,349 million USD by March 2013. After this peak, a general downward trend is observed, with fluctuations but an overall decline to 3,280 million USD by June 2016.
- Total Company stockholders’ equity
- Stockholders’ equity demonstrates a consistent upward trend from March 2011 through December 2013, increasing from approximately 16,289 million USD to 22,230 million USD. Following this period, equity experiences a decline starting in early 2014, with minor fluctuations but an overall decrease to about 16,118 million USD by June 2016.
- Debt to equity ratio
- The debt to equity ratio remains quite low, around 0.03 to 0.04, during 2011, indicating a conservative leverage position. From 2012 onward, the ratio rises steadily with some volatility, reflecting the increase in debt relative to equity. It peaks around 0.24 in late 2015, corresponding with higher debt levels and decreasing equity. The ratio slightly declines towards mid-2016 but remains elevated compared to the earlier period.
Debt to Capital
National Oilwell Varco Inc., debt to capital calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current portion of long-term debt and short-term borrowings | |||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Total Company stockholders’ equity | |||||||||||||||||||||||||||||
| Total capital | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
| Schlumberger Ltd. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited a generally upward trend beginning at 715 million USD at the end of the first quarter of 2011, then decreasing sharply to 510 million USD by the end of 2011. Following this reduction, a marked increase occurred in 2012, with total debt nearly tripling from 510 million USD in March 2012 to 3149 million USD by December 2012. This elevated level persisted through 2013, peaking at 4349 million USD by March 2013, then gradually declining to 3150 million USD by December 2013. Throughout 2014, total debt remained stable around 3145 million USD before rising again to exceed 4300 million USD in mid-2015. Subsequently, a downward trajectory resumed, culminating in approximately 3280 million USD by mid-2016.
- Total Capital
- Total capital showed consistent growth from 17004 million USD in March 2011 to a peak of approximately 25846 million USD at the end of 2013. Thereafter, a gradual decline started in early 2014, with capital reducing to approximately 23282 million USD by March 2015 and continuing this decline to around 19398 million USD by June 2016. This indicates a contraction in total capital over the last few years of the period analyzed.
- Debt to Capital Ratio
- The debt to capital ratio remained low and stable at approximately 0.03 during 2011, indicating minimal reliance on debt financing relative to total capital. However, this ratio increased sharply in 2012, reaching about 0.13 by the end of that year due to the significant increase in total debt. The ratio peaked during early 2013 at 0.17, then saw a modest decline to roughly 0.12–0.13 throughout 2013 and 2014 despite fluctuations in absolute debt levels. Starting in 2015, the ratio ascended again reaching highs near 0.19, reflecting increased leverage amidst the decline in total capital. By mid-2016, the ratio slightly decreased to 0.17, signaling a marginal reduction in relative debt levels relative to capital but still higher than earlier years in the dataset.
- Overall Analysis
- The data reveal a trend towards heightened leverage over the five-year period, with debt levels rising substantially, especially in 2012 and early 2013, and again in 2015. The rise in debt was accompanied by an initial increase and subsequent decline in total capital after 2013. The debt to capital ratio's rise suggests an increased dependency on debt financing, particularly notable from 2012 onwards, and peaking during periods of capital contraction. The fluctuations indicate periods of financial restructuring or strategic shifts impacting capital structure. The overall pattern points to more aggressive leverage management in the latter years, reflecting changing financial strategies or market conditions.
Debt to Assets
National Oilwell Varco Inc., debt to assets calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current portion of long-term debt and short-term borrowings | |||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
| Schlumberger Ltd. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The analysis of the debt and asset metrics over the periods reveals a notable evolution in the financial leverage and asset base.
- Total Debt
- Total debt demonstrated variability, starting at $715 million in Q1 2011 and initially decreasing to a low of $510 million in late 2011. A significant increase occurred in 2012, peaking at $3,149 million by the end of that year. This elevated level sustained through 2013 and 2014, with minor fluctuations generally around $3,100 million. A further increase was observed in early 2015, with debt levels reaching above $4,200 million, before declining gradually to approximately $3,280 million by mid-2016.
- Total Assets
- Total assets showed a consistent upward trend from $23,156 million in Q1 2011 to a peak of $35,480 million in early 2014, indicating growth in the asset base over the period. However, from mid-2014 onwards, there was a gradual decline in assets, reducing to $23,784 million by mid-2016. Despite the late-period decline, total assets remained above starting levels.
- Debt to Assets Ratio
- The debt to assets ratio started very low at 0.03 in early 2011, reflecting minimal leverage relative to assets. The ratio rose sharply during 2012, climbing to 0.10 by year-end and further increasing to approximately 0.13 to 0.15 range in the subsequent years. This suggests a marked increase in leverage, with debt growing faster than assets, particularly from 2012 onward. The ratio stabilized somewhat from 2013 through mid-2016, maintaining a higher leverage level than seen in earlier years.
In summary, the financial data indicates a transition from low leverage and steady asset growth in 2011 to significantly higher leverage from 2012 forward, accompanied by an initial increase and subsequent decline in asset levels. This pattern reflects increasing reliance on debt financing over time, with a peak in indebtedness around 2015 followed by a moderate deleveraging trend into 2016.
Financial Leverage
National Oilwell Varco Inc., financial leverage calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Total Company stockholders’ equity | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Financial leverage1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
| Schlumberger Ltd. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Financial leverage = Total assets ÷ Total Company stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals a series of trends in the company's asset base, equity, and leverage over the examined periods.
- Total Assets
- The total assets demonstrated a generally increasing trajectory from March 31, 2011, starting at approximately $23.16 billion, rising steadily to reach a peak near $35.5 billion in March 2014. Following this peak, there is a noticeable downward trend, with assets decreasing to about $23.78 billion by June 30, 2016. This pattern suggests a phase of expansion followed by contraction or asset divestiture in the later periods.
- Total Company Stockholders’ Equity
- Stockholders' equity also increased consistently from about $16.29 billion in March 2011 to a maximum of approximately $22.7 billion by March 2014. After this peak, it experienced a decline, falling to around $16.12 billion by June 2016. The equity trend closely mirrors that of total assets, indicating correlated movements possibly reflective of retained earnings, issuance or repurchase of shares, or changes in valuation.
- Financial Leverage
- The financial leverage ratio started at 1.42 in March 2011 and showed a general upward trend, peaking at around 1.7 in March 2015. This increase in leverage ratio implies that the company progressively used more debt relative to equity during the period of asset growth. After reaching the peak, there was a modest decline in leverage to about 1.48 by June 2016, which may indicate a reduction in debt levels or growth in equity relative to debt.
In summary, the company experienced a growth phase until early 2014, marked by increasing assets and equity coupled with rising financial leverage. Subsequently, from mid-2014 through mid-2016, both assets and equity declined, accompanied by a reduction in financial leverage, hinting at a shift towards deleveraging and possible asset downsizing or reallocation.
Interest Coverage
National Oilwell Varco Inc., interest coverage calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income (loss) attributable to Company | |||||||||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interest | |||||||||||||||||||||||||||||
| Less: Income from discontinued operations | |||||||||||||||||||||||||||||
| Add: Income tax expense | |||||||||||||||||||||||||||||
| Add: Interest and financial costs | |||||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Interest coverage1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||||||
| Schlumberger Ltd. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Interest coverage
= (EBITQ2 2016
+ EBITQ1 2016
+ EBITQ4 2015
+ EBITQ3 2015)
÷ (Interest expenseQ2 2016
+ Interest expenseQ1 2016
+ Interest expenseQ4 2015
+ Interest expenseQ3 2015)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The Earnings Before Interest and Tax (EBIT) demonstrates an initial upward trend starting at 607 million USD as of March 31, 2011, and peaking around 1,010 million USD in the last quarter of 2014. This rise indicates a period of improving operational profitability over several years. However, from 2015 onwards, EBIT shows a significant decline, turning negative to -1,647 million USD by the first quarter of 2016, followed by continued negative values, which denotes substantial operational challenges or losses.
Interest and financial costs maintain a relatively stable pattern over the observed period, fluctuating narrowly between 8 million and 30 million USD. This relative stability in interest expenses suggests consistent borrowing costs or financial obligations despite the variations in operational earnings.
The Interest Coverage ratio, which measures the ability to cover interest expenses from EBIT, reflects the trends observed in EBIT. It reaches very high levels above 90 in the early periods around late 2011 and early 2012, indicating strong coverage capacity. This ratio gradually decreases over time, falling below 20 by the end of 2015, and ultimately turns negative in the first half of 2016. Negative values represent an inability to cover interest expenses from operational earnings, signaling financial distress.
Overall, the data reveals a strong growth in operational profitability during the initial years, followed by a sharp decline in EBIT and corresponding weakening interest coverage in the last periods. The stable interest costs alongside decreasing EBIT and coverage ratios underline increasing financial risk and potential liquidity concerns during the final quarters analyzed.
- Earnings Before Interest and Tax (EBIT)
- Growth from 607 million USD (Q1 2011) to a peak of 1,010 million USD (Q4 2014), then sharp decline to negative values by early 2016.
- Interest and Financial Costs
- Stable between 8 million and 30 million USD throughout the period, indicating consistent financial charges.
- Interest Coverage Ratio
- High coverage above 90 in early 2012, gradually declining to below 20 by late 2015, becoming negative in early 2016, reflecting deteriorating ability to meet interest obligations.