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Exxon Mobil (WBO:XOM) Interest Coverage

: 81.08 (As of Dec. 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. Exxon Mobil's Operating Income for the three months ended in Dec. 2022 was €15,844 Mil. Exxon Mobil's Interest Expense for the three months ended in Dec. 2022 was €-195 Mil. Exxon Mobil's interest coverage for the quarter that ended in Dec. 2022 was 81.08. The higher the ratio, the stronger the company's financial strength is.

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

WBO:XOM' s Interest Coverage Range Over the Past 10 Years
Min: 2.07   Med: 27.2   Max: 4477.89
Current: 79.63


WBO:XOM's Interest Coverage is ranked better than
80.57% of 767 companies
in the Oil & Gas industry
Industry Median: 11.08 vs WBO:XOM: 79.63

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


Exxon Mobil Interest Coverage Historical Data

The historical data trend for Exxon Mobil'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.

Exxon Mobil Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 27.20 13.89 - 24.53 79.63

Exxon Mobil Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
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 37.51 31.80 106.76 96.04 81.08

Competitive Comparison

For the Oil & Gas Integrated subindustry, Exxon Mobil'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.

   

Exxon Mobil Interest Coverage Distribution

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

* The bar in red indicates where Exxon Mobil's Interest Coverage falls in comparison to its industry or sector. The grey bar indicates the Interest Coverage's extreme value range as defined by GuruFocus.



Exxon Mobil 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.

Exxon Mobil's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, Exxon Mobil's Interest Expense was €-753 Mil. Its Operating Income was €59,987 Mil. And its Long-Term Debt & Capital Lease Obligation was €38,288 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2022 )/Interest Expense (A: Dec. 2022 )
=-1*59987.423999904/-753.31199999879
=79.63

Exxon Mobil's Interest Coverage for the quarter that ended in Dec. 2022 is calculated as

Here, for the three months ended in Dec. 2022, Exxon Mobil's Interest Expense was €-195 Mil. Its Operating Income was €15,844 Mil. And its Long-Term Debt & Capital Lease Obligation was €38,288 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2022 )/Interest Expense (Q: Dec. 2022 )
=-1*15844.095999975/-195.40799999969
=81.08

* 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.


Exxon Mobil  (WBO:XOM) 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 .


Exxon Mobil Interest Coverage Related Terms

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


Exxon Mobil (WBO:XOM) Business Description

Exxon Mobil logo
Address
5959 Las Colinas Boulevard, Irving, TX, USA, 75039-2298
ExxonMobil is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2021, it produced 2.3 million barrels of liquids and 8.5 billion cubic feet of natural gas per day. At the end of 2021, reserves were 18.5 billion barrels of oil equivalent, 66% of which were liquids. The company is the world's largest refiner with a total global refining capacity of 4.6 million barrels of oil per day and one of the world's largest manufacturers of commodity and specialty chemicals.

Exxon Mobil (WBO:XOM) Headlines