Diamond Offshore Drilling (Diamond Offshore Drilling) Interest Coverage

: 3.01 (As of Dec. 2023)

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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. Diamond Offshore Drilling's Operating Income for the three months ended in Dec. 2023 was $45 Mil. Diamond Offshore Drilling's Interest Expense for the three months ended in Dec. 2023 was $-15 Mil. Diamond Offshore Drilling's interest coverage for the quarter that ended in Dec. 2023 was 3.01. The higher the ratio, the stronger the company's financial strength is.

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

DO' s Interest Coverage Range Over the Past 10 Years
Min: 0.87 Med: 0.87 Max: 0.87
Current: 0.87

DO's Interest Coverage is ranked worse than
93.32% of 763 companies
in the Oil & Gas industry
Industry Median: 6.67 vs DO: 0.87

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

Diamond Offshore Drilling Interest Coverage Historical Data

The historical data trend for Diamond Offshore Drilling'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.

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Diamond Offshore Drilling Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Interest Coverage

N/A

0.87

Diamond Offshore Drilling Quarterly Data
	Dec20	Mar21	Sep21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage							-	-	0.65	-	3.01

Competitive Comparison

For the Oil & Gas Drilling subindustry, Diamond Offshore Drilling'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.

Diamond Offshore Drilling Interest Coverage Distribution

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

* The bar in red indicates where Diamond Offshore Drilling's Interest Coverage falls into.

Diamond Offshore Drilling 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.

Diamond Offshore Drilling'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, Diamond Offshore Drilling's Interest Expense was $-53 Mil. Its Operating Income was $47 Mil. And its Long-Term Debt & Capital Lease Obligation was $647 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	46.679	/	-53.416
	=	0.87

Diamond Offshore Drilling's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Diamond Offshore Drilling's Interest Expense was $-15 Mil. Its Operating Income was $45 Mil. And its Long-Term Debt & Capital Lease Obligation was $647 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	44.635	/	-14.847
	=	3.01

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

Diamond Offshore Drilling (NYSE:DO) 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 .

Diamond Offshore Drilling Interest Coverage Related Terms

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

Diamond Offshore Drilling (Diamond Offshore Drilling) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Diamond Offshore Drilling Inc (NYSE:DO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

DO10:Germany

Address

15415 Katy Freeway, Houston, TX, USA, 77094

Website

http://www.diamondoffshore.com

Diamond Offshore Drilling Inc is a leader in offshore drilling, providing contract drilling services to the energy industry around the globe with a total fleet of 12 offshore drilling rigs, consisting of eight semisubmersibles and four dynamically positioned drillships.

Executives

Dominic A Savarino	officer: VP and Chief Acct/Tax Officer	15415 KATY FREEWAY, SUITE 100, HOUSTON TX 77094
Patrice D Douglas	director	1712 CROSSBOW, EDMOND OK 73034
Benjamin Duster	director	200 E. 84ST, 8TH FLOOR, NEW YORK NY 10028
Ane Launy	director	15415 KATY FREEWAY, SUITE 100, HOUSTON TX 77094
Patrick Carey Lowe	director	6 CHESTERFIELD GARDENS, 3RD FLOOR, LONDON X0 W1J 5BQ
Adam C Peakes	director	13135 S. DAIRY ASHFORD, STE. 800, SUGAR LAND TX 77478
Bernie G. Wolford	director, officer: President and CEO	15415 KATY FREEWAY, SUITE 100, HOUSTON TX 770904
Neal P Goldman	director	10700 PARKRIDGE BLVD., RESTON VA 20191
John Hollowell	director	ONE SHELL PLAZA, 910 LOUISIANA STREET, HOUSTON TX 77002
Raj Iyer	director	15415 KATY FREEWAY, SUITE 100, HOUSTON TX 77094
Peter Mcteague	director	15415 KATY FREEWAY, SUITE 100, HOUSTON TX 77094
Alan H Howard	director
Anatol Feygin	director	700 MILAM STREET, SUITE 1900, HOUSTON TX 77002
Scott Lee Kornblau	officer: Acting Chief Financial Officer	15415 KATY FREEWAY, SUITE 100, HOUSTON TX 77094
Thomas Roth	officer: Senior Vice President	15415 KATY FREEWAY, SUITE 100, HOUSTON TX 77094