Canadian Natural Resources (Canadian Natural Resources) Interest Coverage

: 16.40 (As of Dec. 2023)

View and export this data going back to 2000. Start your Free Trial

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. Canadian Natural Resources's Operating Income for the three months ended in Dec. 2023 was $2,102 Mil. Canadian Natural Resources's Interest Expense for the three months ended in Dec. 2023 was $-128 Mil. Canadian Natural Resources's interest coverage for the quarter that ended in Dec. 2023 was 16.40. The higher the ratio, the stronger the company's financial strength is.

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

CNQ' s Interest Coverage Range Over the Past 10 Years
Min: 3.21 Med: 12.8 Max: 22.03
Current: 15.14

CNQ's Interest Coverage is ranked better than
67.59% of 759 companies
in the Oil & Gas industry
Industry Median: 6.72 vs CNQ: 15.14

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

Canadian Natural Resources Interest Coverage Historical Data

The historical data trend for Canadian Natural Resources'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.

Canadian Natural Resources Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

6.13

12.80

22.03

15.14

Canadian Natural Resources Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															5.79	15.91	9.39	18.83	16.40

Competitive Comparison

For the Oil & Gas E&P subindustry, Canadian Natural Resources'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.

Canadian Natural Resources Interest Coverage Distribution

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

* The bar in red indicates where Canadian Natural Resources's Interest Coverage falls into.

Canadian Natural Resources 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.

Canadian Natural Resources'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, Canadian Natural Resources's Interest Expense was $-515 Mil. Its Operating Income was $7,800 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,319 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	7799.642	/	-515.057
	=	15.14

Canadian Natural Resources's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Canadian Natural Resources's Interest Expense was $-128 Mil. Its Operating Income was $2,102 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,319 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	2101.968	/	-128.205
	=	16.40

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

Canadian Natural Resources (NYSE:CNQ) 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 .

Canadian Natural Resources Interest Coverage Related Terms

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

Canadian Natural Resources (Canadian Natural Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Canadian Natural Resources Ltd (NYSE:CNQ) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

CRC:Germany CRC:Germany CNQ:Canada

Address

855 - 2nd Street South West, Suite 2100, Calgary, AB, CAN, T2P 4J8

Website

https://www.cnrl.com

Canadian Natural Resources Ltd is an independent crude oil and natural gas exploration, development, and production company. The Company's exploration and production operations are focused in North America, largely in Western Canada; the United Kingdom (UK) portion of the North Sea, and Cote d'Ivoire and South Africa in Offshore Africa. The Company's exploration and production activities are conducted in three geographic segments: North America, the North Sea, and Offshore Africa. These activities include the exploration, development, production, and marketing of crude oil, natural gas liquids, and natural gas. The company has two divisions; Oil Sands Mining and Upgrading Midstream and Refining. It derives a majority of its revenue from North America.