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Liberty Energy (Liberty Energy) Interest Coverage : 15.15 (As of Mar. 2024)


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What is Liberty Energy Interest Coverage?

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. Liberty Energy's Operating Income for the three months ended in Mar. 2024 was $114 Mil. Liberty Energy's Interest Expense for the three months ended in Mar. 2024 was $-8 Mil. Liberty Energy's interest coverage for the quarter that ended in Mar. 2024 was 15.15. The higher the ratio, the stronger the company's financial strength is.

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

LBRT' s Interest Coverage Range Over the Past 10 Years
Min: 6.07   Med: 17.28   Max: 25.62
Current: 22.37


LBRT's Interest Coverage is ranked better than
72.96% of 758 companies
in the Oil & Gas industry
Industry Median: 6.74 vs LBRT: 22.37

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


Liberty Energy Interest Coverage Historical Data

The historical data trend for Liberty Energy'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.

* Premium members only.

Liberty Energy Interest Coverage Chart

Liberty Energy Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only 6.07 - - 21.89 25.62

Liberty Energy Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Interest Coverage Get a 7-Day Free Trial 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 27.37 29.86 27.59 17.47 15.15

Competitive Comparison of Liberty Energy's Interest Coverage

For the Oil & Gas Equipment & Services subindustry, Liberty Energy'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.


Liberty Energy's Interest Coverage Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Liberty Energy's Interest Coverage falls into.



Liberty Energy 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.

Liberty Energy'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, Liberty Energy's Interest Expense was $-29 Mil. Its Operating Income was $756 Mil. And its Long-Term Debt & Capital Lease Obligation was $338 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*755.638/-29.493
=25.62

Liberty Energy's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Liberty Energy's Interest Expense was $-8 Mil. Its Operating Income was $114 Mil. And its Long-Term Debt & Capital Lease Obligation was $373 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*114.273/-7.541
=15.15

* 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.


Liberty Energy  (NYSE:LBRT) 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 .


Liberty Energy Interest Coverage Related Terms

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


Liberty Energy (Liberty Energy) Business Description

Traded in Other Exchanges
N/A
Address
950 17th Street, Suite 2400, Denver, CO, USA, 80202
Liberty Energy is an oilfield services company that provides hydraulic fracturing services—mainly pressure pumping—in major basins throughout North America. Its 2020 acquisition of Schlumberger's OneStim business segment made Liberty one of the largest pressure pumpers in North America. It also added wireline operations, two Permian frac sand mines, and an expanded technological portfolio.
Executives
Christopher A Wright director, officer: Chief Executive Officer 106 ALTA VISTA AVENUE, MILL VALLEY CA 94941
R Sean Elliott officer: See Remarks 6565 MACARTHUR BLVD, SUITE 1050, IRVING TX 75039
Ron Gusek officer: President 950 17TH STREET, SUITE 2000, DENVER CO 80202
Ken Babcock director 950 17TH STREET, SUITE 2000, DENVER CO 80202
Ryan T Gosney officer: Chief Accounting Officer 950 17TH STREET, SUITE 2000, DENVER CO 80202
Michael Stock officer: Chief Financial Officer 950 17TH STREET, SUITE 2000, DENVER CO 80202
Limited/nv Schlumberger 10 percent owner 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Audrey Robertson director BONANZA CREEK ENERGY, INC., 410 - 17TH STREET, SUITE 1400, DENVER CO 80202
Riverstone/carlyle Energy Partners Iv, L.p. director, 10 percent owner C/O RIVERSTONE HOLDINGS LLC, 712 FIFTH AVENUE, 36TH FLOOR, NEW YORK NY 10019
Simon Ayat director C/O SCHLUMBERGER LIMITED, 5999 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
James R Mcdonald director 13126 CONIFER RD, HOUSTON TX 77079
B.v. Schlumberger 10 percent owner 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Schlumberger Holdings Corp 10 percent owner 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Schlumberger Technology Corp 10 percent owner 300 SCHLUMBERGER DRIVE, MD 23, SUGAR LAND TX 77478
Brett Staffieri director 950 17TH STREET, SUITE 2000, DENVER CO 80202