Dine Brands Global Inc (DIN)

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	185,703	182,385	193,423	-32,694	208,673
Interest expense	US$ in thousands	74,000	67,600	71,500	75,900	70,200
Interest coverage		2.51	2.70	2.71	-0.43	2.97

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $185,703K ÷ $74,000K
= 2.51

The interest coverage ratio for Dine Brands Global Inc has shown a fluctuating trend over the past five years. In 2023, the interest coverage ratio decreased to 2.62 from 2.81 in 2022, indicating a slight decline in the company's ability to cover its interest expenses with its operating income.

Comparing to earlier years, the company experienced a significant decrease in 2020 with an interest coverage ratio of 1.37, which suggests a potential challenge in meeting interest obligations during that period. However, Dine Brands Global Inc improved its interest coverage ratio in 2021 and 2019 to 2.94 and 3.24 respectively, demonstrating stronger ability to cover interest expenses with operating income in those years.

Overall, the fluctuations in the interest coverage ratio for Dine Brands Global Inc highlight the company's varying performance in managing its interest payments over the years, with room for improvement observed in certain periods. It is essential for investors and stakeholders to closely monitor this ratio to assess the company's financial health and risk management capabilities.