BJs Restaurants Inc (BJRI)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	13,749	26,861	26,316	21,157	16,965	19,353	8,506	-7,725	-28,253	-49,786	-51,025	-46,775	-46,557	-43,391	-41,965	-75,131	-66,088	-37,134	-20,689	30,421
Interest expense (ttm)	US$ in thousands	5,484	5,685	5,356	5,205	4,915	4,415	4,047	3,375	2,888	2,674	3,076	4,234	5,002	6,069	6,661	7,009	7,078	6,355	5,890	5,014
Interest coverage		2.51	4.72	4.91	4.06	3.45	4.38	2.10	-2.29	-9.78	-18.62	-16.59	-11.05	-9.31	-7.15	-6.30	-10.72	-9.34	-5.84	-3.51	6.07

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $13,749K ÷ $5,484K
= 2.51

The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. Looking at BJs Restaurants Inc's interest coverage data from March 31, 2020, to December 31, 2024, we can see fluctuations in the ratio.

From March 2020 to June 2022, the interest coverage ratio was consistently negative, indicating that the company's operating income was insufficient to cover its interest expenses during that period. The lowest ratio was recorded at -18.62 on September 30, 2022, reflecting significant financial strain.

However, starting from March 2023, the company's interest coverage ratio turned positive, indicating an improvement in its ability to meet interest obligations using operating income. The ratio continued to increase steadily, reaching 4.72 on September 30, 2024.

Overall, BJs Restaurants Inc's interest coverage ratio showed a volatile trend over the analyzed period, with periods of financial distress followed by a recovery and improvement in covering interest expenses. It is essential for investors and stakeholders to closely monitor this ratio to assess the company's financial health and ability to meet its debt obligations.