Bloomin Brands Inc (BLMN)

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	3,786	95,692	130,915	176,057	355,394	348,251	347,352	343,798	330,421	329,545	294,663	336,758	322,721	242,695	211,960	-4,226	-98,488	-56,375	-18,707	113,077
Interest expense (ttm)	US$ in thousands	62,593	58,292	55,182	53,341	52,169	52,547	52,400	51,987	53,176	52,628	54,177	56,619	57,614	61,658	65,713	67,362	64,442	59,019	53,975	49,784
Interest coverage		0.06	1.64	2.37	3.30	6.81	6.63	6.63	6.61	6.21	6.26	5.44	5.95	5.60	3.94	3.23	-0.06	-1.53	-0.96	-0.35	2.27

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,786K ÷ $62,593K
= 0.06

The interest coverage ratio measures a company's ability to pay interest expenses on its outstanding debt. A higher ratio indicates the company is more capable of meeting its interest obligations.

Based on the data provided for Bloomin Brands Inc, the interest coverage ratio fluctuated over the periods analyzed. In March 2020, the ratio stood at 2.27, indicating the company's earnings were 2.27 times its interest expenses, which suggests a moderate ability to cover interest payments.

However, from June 2020 to March 2021, the interest coverage ratio was negative, which is a concerning sign as it implies that the company's earnings were insufficient to cover its interest expenses during those periods.

Starting from June 2021, there was a significant improvement in the interest coverage ratio, with values exceeding 3. This trend continued to strengthen through December 2023, reaching its peak at 6.81, indicating a strong ability to cover interest payments.

By March 2024, the interest coverage ratio slightly dropped to 3.30, and as of December 2024, it had decreased further to 0.06. These lower ratios suggest a potential strain on the company's ability to cover interest expenses with its earnings during those periods.

In conclusion, Bloomin Brands Inc experienced fluctuations in its interest coverage ratio over the analyzed periods, showing both strengths and weaknesses in its ability to meet interest payment obligations. Continued monitoring of this ratio is crucial to assess the company's financial health and debt management capabilities.