U.S. Energy (De)(Useg) Financials: Interest Coverage Compared To Industry Average, Plus Other Key Ratios
Solvency Trend (Last 5 Years)
Solvency - interest coverage
This chart shows the historical trend of interest coverage for USEG compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Interest Coverage
Definition: Interest coverage tells you how easily the company can pay interest on its debt using operating profits. It’s like asking: “Can the company comfortably make its loan payments, or is it barely scraping by?” The higher the ratio, the safer. A very low ratio means debt payments may strain the business, especially if profits drop.
Interpretation:
• In '2022', USEG's interest coverage was -4.25, indicating the firm's ability to meet its interest obligations. Industry average for Oil & Gas Production in '2022' stood at 3.77.
• In '2023', USEG's interest coverage was -28.84, indicating the firm's ability to meet its interest obligations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Oil & Gas Production in '2023' stood at 4.12. Industry average increased by 0.35 compared to previous year.
• In '2024', USEG's interest coverage was -47.61, indicating the firm's ability to meet its interest obligations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Oil & Gas Production in '2024' stood at 2.19. Industry average declined by 1.94 from previous year.
Overall, USEG's interest coverage has been volatile but showed a downward trend over the past 3 years.
Formula: Interest Coverage = EBIT / Interest Expense
Good Range: Minimum 3-5 desirable; below 1 is risky.