Chuy's Holdings Inc (CHUY)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	33,589	22,336	34,402	-8,544	3,436
Interest expense	US$ in thousands	88	87	144	257	122
Interest coverage		381.69	256.74	238.90	-33.25	28.16

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $33,589K ÷ $88K
= 381.69

The interest coverage ratio for Chuy`s Holdings Inc has shown fluctuations over the past five years. In 2019, the interest coverage ratio was 149.43, indicating that the company's operating income was sufficient to cover its interest expenses nearly 150 times. This high ratio suggests a strong ability to meet interest payments from operating earnings.

In 2020, the interest coverage ratio decreased to 67.12, which may signal that the company's ability to cover interest payments with operating income weakened. However, it still indicates a reasonable level of ability to meet interest obligations.

By 2021, the interest coverage ratio significantly improved to 309.61, demonstrating a substantial increase in the company's ability to cover interest expenses with operating income. This suggests improved financial health and a stronger ability to meet debt obligations.

Unfortunately, data for the most recent years, 2022 and 2023, is not provided. The lack of information on the interest coverage ratios for these years limits a complete understanding of the company's current financial position. A closer analysis of recent data is necessary to assess whether the improvements seen in 2021 were sustained or if there have been any concerning developments in the company's ability to cover interest expenses.