Dine Brands Global Inc (DIN)

Dine Brands Global Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets that are financed by debt. Dine Brands' debt-to-assets ratio has fluctuated over the years, decreasing from 0.78 in 2020 to 0.72 in 2023. A lower ratio suggests a lower reliance on debt to finance assets, which could indicate a healthier financial position.

2. Debt-to-capital ratio: This ratio indicates the percentage of a company's capital that is funded by debt. Dine Brands' debt-to-capital ratio has also shown variations, dropping from 1.28 in 2020 to 1.25 in 2023. A decreasing trend in this ratio signals a lower dependence on debt financing in relation to total capital employed.

3. Debt-to-equity ratio: The data for this ratio is not provided, which limits a comprehensive analysis of the company's solvency structure. This ratio would have been valuable in understanding the extent of leverage compared to shareholders' equity.

4. Financial leverage ratio: Unfortunately, details for this ratio are also not available in the provided data. The financial leverage ratio would have offered insights into the company's use of debt in relation to its equity, helping to assess risk and financial stability.

Overall, the decreasing trends in both the debt-to-assets and debt-to-capital ratios over the years suggest a positive shift towards a more conservative debt position, which could enhance the company's solvency and financial stability. However, the absence of data for the debt-to-equity and financial leverage ratios limits the depth of the analysis regarding Dine Brands Global Inc's solvency structure.

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Coverage ratios

Interest coverage measures a company's ability to meet its interest payments on outstanding debt using its operating income. Dine Brands Global Inc's interest coverage has shown some fluctuation over the past five years. In 2023, the interest coverage ratio was 2.62, slightly lower than the previous year's ratio of 2.81. This indicates that the company's ability to pay interest expenses from operating income weakened slightly during the year.

Comparing to the ratios in 2021 and 2020, where the interest coverage ratios were 2.94 and 1.37 respectively, we see a trend of fluctuation in Dine Brands Global Inc's ability to cover interest expenses. However, it is worth noting that the ratio was higher in 2023 compared to 2020, showing improvement in the company's ability to service its debt.

In 2019, the interest coverage ratio was 3.24, the highest among the five years presented. This indicates that the company had a strong ability to cover its interest expenses that year. Overall, while there has been some variability in Dine Brands Global Inc's interest coverage over the years, the company has generally maintained a reasonable level of ability to meet its interest obligations from its operating income.