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COP (ConocoPhillips) Interest Coverage : 12.45 (As of Jun. 2024)


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What is ConocoPhillips Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. ConocoPhillips's Operating Income for the three months ended in Jun. 2024 was $3,462 Mil. ConocoPhillips's Interest Expense for the three months ended in Jun. 2024 was $-278 Mil. ConocoPhillips's interest coverage for the quarter that ended in Jun. 2024 was 12.45. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for ConocoPhillips's Interest Coverage or its related term are showing as below:

COP' s Interest Coverage Range Over the Past 10 Years
Min: 1.68   Med: 8.4   Max: 24.13
Current: 13.19


COP's Interest Coverage is ranked better than
68.11% of 737 companies
in the Oil & Gas industry
Industry Median: 6.64 vs COP: 13.19

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


ConocoPhillips Interest Coverage Historical Data

The historical data trend for ConocoPhillips's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

ConocoPhillips Interest Coverage Chart

ConocoPhillips Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.40 - 10.72 24.13 14.14

ConocoPhillips Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.30 14.58 13.72 12.08 12.45

Competitive Comparison of ConocoPhillips's Interest Coverage

For the Oil & Gas E&P subindustry, ConocoPhillips's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


ConocoPhillips's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, ConocoPhillips's Interest Coverage distribution charts can be found below:

* The bar in red indicates where ConocoPhillips's Interest Coverage falls into.



ConocoPhillips Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

ConocoPhillips's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, ConocoPhillips's Interest Expense was $-1,063 Mil. Its Operating Income was $15,026 Mil. And its Long-Term Debt & Capital Lease Obligation was $17,863 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*15026/-1063
=14.14

ConocoPhillips's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the three months ended in Jun. 2024, ConocoPhillips's Interest Expense was $-278 Mil. Its Operating Income was $3,462 Mil. And its Long-Term Debt & Capital Lease Obligation was $17,040 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*3462/-278
=12.45

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


ConocoPhillips  (NYSE:COP) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


ConocoPhillips Interest Coverage Related Terms

Thank you for viewing the detailed overview of ConocoPhillips's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


ConocoPhillips Business Description

Address
925 North Eldridge Parkway, Houston, TX, USA, 77079
ConocoPhillips is a US-based independent exploration and production firm. In 2023, it produced 1.2 million barrels per day of oil and natural gas liquids and 3.1 billion cubic feet per day of natural gas, primarily from Alaska and the Lower 48 in the United States and Norway in Europe and several countries in Asia-Pacific and the Middle East. Proven reserves at year-end 2023 were 6.8 billion barrels of oil equivalent.
Executives
Timothy A Leach director, officer: Executive Vice President 7220 MEADOW ROAD, DALLAS TX 75230
Nicholas G Olds officer: Senior Vice President SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084
Ryan Michael Lance officer: Senior Vice President SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084
Bullock William L. Jr. officer: President SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084
Christopher P. Delk officer: Vice President, Controller SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084
Dominic E. Macklon officer: President SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084
Heather G Sirdashney officer: Vice President SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084
Andrew D Lundquist officer: SVP 5205 N O'CONNOR BLVD, SUITE 200, IRVING TX 75039
Sharmila Mulligan director SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084
Kirk L. Johnson officer: Senior Vice President SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084
C William Giraud officer: Senior Vice President SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084
Caroline Maury Devine director ATLANTIC COAST AIRLINES INC, 45200 BUSINESS COURT, DULLES VA 20166
R A Walker director 1201 LAKE ROBBINS DRIVE, THE WOODLANDS TX 77380
Kelly Brunetti Rose officer: SVP & General Counsel SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084
Andrew M. O'brien officer: Senior Vice President SHIPPING & RECEIVING CENTER, 16930 PARK ROW DR., HOUSTON TX 77084