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ConocoPhillips Interest Coverage

: 26.17 (As of Jun. 2022)
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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. ConocoPhillips's Operating Income for the three months ended in Jun. 2022 was $7,117 Mil. ConocoPhillips's Interest Expense for the three months ended in Jun. 2022 was $-272 Mil. ConocoPhillips's interest coverage for the quarter that ended in Jun. 2022 was 26.17. 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: 14.69
Current: 19.6


COP's Interest Coverage is ranked better than
58.39% of 733 companies
in the Oil & Gas industry
Industry Median: 9.77 vs COP: 19.60

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


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.

* Premium members only.

ConocoPhillips Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.68 8.40 6.40 - 10.72

ConocoPhillips Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only 9.74 12.46 16.42 23.51 26.17

Competitive Comparison

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 Interest Coverage Distribution

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.


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. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, ConocoPhillips's Interest Expense was $-1,126 Mil. Its Operating Income was $12,071 Mil. And its Long-Term Debt & Capital Lease Obligation was $18,734 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*12071/-1126
=10.72

ConocoPhillips's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, ConocoPhillips's Interest Expense was $-272 Mil. Its Operating Income was $7,117 Mil. And its Long-Term Debt & Capital Lease Obligation was $16,295 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*7117/-272
=26.17

* 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

ConocoPhillips logo
Address
925 North Eldridge Parkway, Houston, TX, USA, 77079
ConocoPhillips is a U.S.-based independent exploration and production firm. At the end of 2020, it produced 727,000 barrels per day of oil and natural gas liquids and 2.4 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 2020 were 4.5 billion barrels of oil equivalent.
Executives
Harper Jack F officer: Executive Vice President SHIPPING & RECEIVING CENTER 16930 PARK ROW DR. HOUSTON TX 77084
Haynes Welsh Kontessa S officer: Chief Accounting Officer SHIPPING & RECEIVING 16930 PARK ROW DR. HOUSTON TX 77084
Sirdashney Heather G officer: Vice President SHIPPING & RECEIVING CENTER 16930 PARK ROW DR. HOUSTON TX 77084
Leach Timothy A director, officer: Executive Vice President 7220 MEADOW ROAD DALLAS TX 75230
Mullins Eric D. director HERITAGE PLAZA, 1111 BAGBY STREET SUITE 4600 HOUSTON TX 77002
Olds Nicholas G officer: Senior Vice President SHIPPING & RECEIVING CENTER 16930 PARK ROW DR. HOUSTON TX 77084
Walker R A director 1201 LAKE ROBBINS DRIVE THE WOODLANDS TX 77380
Seaton David Thomas director 6700 LAS COLINAS BOULEVARD IRVING TX 75039
Macklon Dominic E. officer: 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
Hatfield Michael D. officer: President SHIPPING & RECEIVING CENTER 16930 PARK ROW DR. HOUSTON TX 77084
Brooks Catherine A. officer: VP & Controller SHIPPING & RECEIVING CENTER 16930 PARK ROW DR. HOUSTON TX 77084
Mcraven William H. director SHIPPING & RECEIVING CENTER 16930 PARK ROW DR. HOUSTON TX 77084
Rose Kelly Brunetti officer: SVP & General Counsel SHIPPING & RECEIVING CENTER 16930 PARK ROW DR. HOUSTON TX 77084
Joerres Jeffrey A director 5301 NORTH IRONWOOD ROAD MILWAUKEE WI 53217

ConocoPhillips Headlines

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