BJs Restaurants Inc (BJRI)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	13,759	14,680	11,896	4,829	-5,480	-17,727	-19,514	-15,985	-16,507	-28,812	-34,534	-86,941	-86,431	-49,809	-33,859	27,629	49,119	46,997	51,617	54,982
Interest expense (ttm)	US$ in thousands	2,337	2,341	2,341	1,288	221	245	337	428	511	429	283	185	85	1,388	2,562	3,580	4,613	4,322	4,206	4,521
Interest coverage		5.89	6.27	5.08	3.75	-24.80	-72.36	-57.91	-37.35	-32.30	-67.16	-122.03	-469.95	-1,016.84	-35.89	-13.22	7.72	10.65	10.87	12.27	12.16

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $13,759K ÷ $2,337K
= 5.89

The interest coverage ratio for BJs Restaurants Inc has fluctuated over the past few quarters. As of December 31, 2023, the interest coverage ratio was 5.89, indicating that the company generated earnings nearly six times more than the interest expenses for that period. This shows a healthy ability to meet its interest payment obligations.

However, looking back at previous periods, the company's interest coverage ratio has experienced significant volatility. For instance, in the third quarter of 2022, the ratio dropped to -72.36, suggesting that the company's earnings were insufficient to cover its interest expenses, raising concerns about its financial stability.

It is important for investors and stakeholders to closely monitor BJs Restaurants Inc's interest coverage ratio to assess its ability to handle its debt obligations and avoid potential financial distress.