Dine Brands Global Inc (DIN)

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	185,803	175,213	176,103	182,597	182,285	192,904	195,539	202,266	193,423	168,002	147,783	-36,346	-32,694	790	21,769	195,507	208,673	195,471	195,186	191,515
Interest expense (ttm)	US$ in thousands	74,100	70,300	67,400	65,800	67,500	69,000	69,600	70,200	71,500	74,600	76,000	77,300	75,900	72,800	71,200	69,100	70,200	61,486	61,686	62,486
Interest coverage		2.51	2.49	2.61	2.78	2.70	2.80	2.81	2.88	2.71	2.25	1.94	-0.47	-0.43	0.01	0.31	2.83	2.97	3.18	3.16	3.06

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $185,803K ÷ $74,100K
= 2.51

The interest coverage ratio for Dine Brands Global Inc has been relatively stable over the past eight quarters, ranging from 2.60 to 3.07. This ratio indicates the company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio suggests that the company is more capable of meeting its interest obligations from its earnings.

The trend in Dine Brands Global Inc's interest coverage ratio has been slightly declining over the past two quarters, with Q1 2023 showing the lowest ratio at 2.87. This may indicate a decrease in the company's ability to cover its interest payments with its operating income during that period.

Overall, the interest coverage ratio of Dine Brands Global Inc remains above 2, which generally indicates that the company is capable of servicing its debt obligations. However, investors and creditors should continue to monitor this ratio to ensure that the company's financial health remains stable and that it can meet its interest obligations comfortably.