SBM Offshore NV (SBM Offshore NV) Interest Coverage : 1.55 (As of Dec. 2023)

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SBM Offshore NV Interest Coverage Definition

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. SBM Offshore NV's Operating Income for the six months ended in Dec. 2023 was $623 Mil. SBM Offshore NV's Interest Expense for the six months ended in Dec. 2023 was $-403 Mil. SBM Offshore NV's interest coverage for the quarter that ended in Dec. 2023 was 1.55. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. SBM Offshore NV interest coverage is 1.6, which is low.

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

SBFFF' s Interest Coverage Range Over the Past 10 Years
Min: 0.71 Med: 2.2 Max: 4.16
Current: 1.6

SBFFF's Interest Coverage is ranked worse than
86.2% of 761 companies
in the Oil & Gas industry
Industry Median: 6.71 vs SBFFF: 1.60

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

SBM Offshore NV Interest Coverage Historical Data

The historical data trend for SBM Offshore NV'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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SBM Offshore NV Interest Coverage Chart

SBM Offshore NV Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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2.70

2.61

2.32

2.61

1.60

SBM Offshore NV Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															2.27	3.27	2.13	1.66	1.55

Competitive Comparison of SBM Offshore NV's Interest Coverage

For the Oil & Gas Equipment & Services subindustry, SBM Offshore NV'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.

SBM Offshore NV's Interest Coverage Distribution in the Oil & Gas Industry

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

* The bar in red indicates where SBM Offshore NV's Interest Coverage falls into.

SBM Offshore NV 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.

SBM Offshore NV'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, SBM Offshore NV's Interest Expense was $-737 Mil. Its Operating Income was $1,179 Mil. And its Long-Term Debt & Capital Lease Obligation was $8,186 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1179	/	-737
	=	1.60

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

Here, for the six months ended in Dec. 2023, SBM Offshore NV's Interest Expense was $-403 Mil. Its Operating Income was $623 Mil. And its Long-Term Debt & Capital Lease Obligation was $8,186 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	623	/	-403
	=	1.55

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

SBM Offshore NV (OTCPK:SBFFF) 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 .

SBM Offshore NV Interest Coverage Related Terms

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

SBM Offshore NV (SBM Offshore NV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » SBM Offshore NV (OTCPK:SBFFF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SBFFY:USA SBMO:Netherlands SBMOa:UK 0NIS:UK IHCB:Germany IHCB:Germany

Address

Evert van de Beekstraat 1-77, Schiphol, Amsterdam, NH, NLD, 1118 CL

Website

https://www.sbmoffshore.com

SBM Offshore NV provides floating production solutions to the offshore energy industry both in hydrocarbon and renewable markets. Its main activities are the design, supply, installation, operation, and life extension of Floating Production Storage and Offloading (FPSO) vessels. The company is also working on floating offshore wind, wave energy and research and development of products for future energy markets. It has dedicated product lines to provide specific floating equipment and products such as Turret Mooring Systems (TMS) and offshore (off)loading Terminals. The Company has two segments: Lease and Operate segment includes all earned day rates on operating lease and operate contracts, and The turnkey segment includes revenues from Turnkey supply contracts and after-sales services.