MCDBF (McDermott International) Interest Coverage: 1.27 (As of Dec. 2025) — Near Median


MCDBF McDermott International Ltd MCDBF
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What is McDermott International Interest Coverage?

McDermott International MCDBF 30 Interest Coverage is 1.27 as of Dec. 2025, which is at its 10-year median of 1.27. GuruFocus rates MCDBF with a GF Score™ of 30/100. The stock has 1 warning sign investors should review. Among 1,355 Construction companies, McDermott International ranks worse than 90.04% on this metric.

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. McDermott International's Operating Income for the six months ended in Dec. 2025 was $200.00 Mil. McDermott International's Interest Expense for the six months ended in Dec. 2025 was $-158.00 Mil. McDermott International's interest coverage for the quarter that ended in Dec. 2025 was 1.27. The higher the ratio, the stronger the company's financial strength is.

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

MCDBF' s Interest Coverage Range Over the Past 10 Years
Min: 1.27   Med: 1.27   Max: 1.27
Current: 1.27


MCDBF's Interest Coverage is ranked worse than
90.04% of 1355 companies
in the Construction industry
Industry Median: 7.81 vs MCDBF: 1.27

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


McDermott International  (OTCPK:MCDBF) 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 .


McDermott International Interest Coverage Related Terms


McDermott International Interest Coverage Historical Data

* Premium members only.

The historical data trend for McDermott International'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.

McDermott International Interest Coverage Chart

McDermott International Annual Data
Trend Dec24 Dec25
Interest Coverage
0.00 1.27

McDermott International Semi-Annual Data
Dec24 Dec25
Interest Coverage 0.00 1.27

MCDBF vs CDNL, ORN, BWMN: Interest Coverage Comparison

For the Engineering & Construction subindustry, McDermott International'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.


McDermott International Interest Coverage vs Construction Industry

For the Construction industry and Industrials sector, McDermott International's Interest Coverage distribution charts can be found below:

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


MCDBF
30GF Score
McDermott International Ltd MCDBF
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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McDermott International 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.

McDermott International's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, McDermott International's Interest Expense was $-158.00 Mil. Its Operating Income was $200.00 Mil. And its Long-Term Debt & Capital Lease Obligation was $999.00 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*200/-158
=1.27

McDermott International's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, McDermott International's Interest Expense was $-158.00 Mil. Its Operating Income was $200.00 Mil. And its Long-Term Debt & Capital Lease Obligation was $999.00 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*200/-158
=1.27

* 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.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 1.27 mean?
McDermott International (MCDBF) has a Interest Coverage of 1.27 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on McDermott International and its competitors. This is near median its historical median of 1.27. Over the past decade, McDermott International's Interest Coverage has ranged from 1.27 to 1.27. According to the industry distribution chart, McDermott International ranks #1220 out of 1355 companies in the Construction industry, placing it in the top 90%.
Is McDermott International's Interest Coverage too high?
McDermott International's current Interest Coverage of 1.27 is near median its 10-year median of 1.27. Over the past 10 years, this metric has ranged from a low of 1.27 to a high of 1.27. The Construction industry median Interest Coverage is 7.81. McDermott International's value of 1.27 is 83.7% below this industry median. Based on the distribution chart, McDermott International ranks #1220 out of 1355 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, McDermott International has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does McDermott International's Interest Coverage compare to CDNL and ORN?
According to the Construction industry distribution chart, McDermott International ranks #1220 out of 1355 companies for Interest Coverage. This places McDermott International in the lower half of its industry. The industry median Interest Coverage is 7.81. McDermott International's value of 1.27 is 83.7% below this benchmark. Historically, McDermott International's own Interest Coverage has ranged from 1.27 to 1.27 over the past decade. While the company's 10-year median is 1.27 vs. the industry median of 7.81, McDermott International has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Construction company?
The median Interest Coverage among Construction companies is 7.81, based on 1,355 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McDermott International's current Interest Coverage of 1.27 is 83.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on McDermott International and its competitors. For the Construction industry, the median Interest Coverage is 7.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDermott International's current Interest Coverage is 1.27, which is near median its own 10-year median of 1.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McDermott International stock overvalued right now?
McDermott International (MCDBF) has a current Interest Coverage of 1.27. The current Interest Coverage is 1.27, which is near median its 10-year median of 1.27 and 83.7% below the Construction industry median of 7.81. McDermott International's overall GF Score™ is 30/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For McDermott International (MCDBF), the current Interest Coverage is 1.27 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

McDermott International Business Description

Other Exchanges MCDIF:USA
Address 915 North Eldridge Parkway, Houston, TX, USA, 77079
McDermott International Ltd is a fully integrated provider of engineering, procurement, construction, and installation (EPCI) solutions to the energy industry globally. The company designs and builds infrastructure to transport and process oil and gas, covering offshore, subsea, liquefied natural gas (LNG), and downstream oil and gas projects, including fixed, floating, and subsea production facilities, pipelines, storage systems, and processing plants. It also provides energy transition and sustainable engineering solutions. The company operates through the Low Carbon Solutions, Offshore Middle East, and Subsea and Floating Facilities segments, serving national and other oil and gas companies across energy-producing regions, and generates the majority of its revenue from United States.
30GF Score

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