Domino's Pizza Inc Common Stock (DPZ)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 918,085 | 848,915 | 771,087 | 817,511 | 727,296 |
| Interest expense | US$ in thousands | 195,870 | 196,475 | 198,254 | 191,806 | 172,166 |
| Interest coverage | 4.69 | 4.32 | 3.89 | 4.26 | 4.22 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $918,085K ÷ $195,870K
= 4.69
Based on the provided data, the interest coverage ratio of Domino's Pizza Inc Common Stock has remained relatively stable over the years. The interest coverage ratio indicates the company's ability to meet its interest payment obligations with its operating income.
In 2020, the interest coverage ratio was reported at 4.22, showing that the company generated operating income more than four times its interest expenses. This indicates a strong ability to cover interest payments.
In 2021, the interest coverage ratio slightly increased to 4.26, suggesting a continued ability to comfortably cover interest costs.
However, in 2022, the interest coverage ratio declined to 3.89, which may indicate a slightly reduced capacity to cover interest expenses compared to the previous years.
The trend reversed in 2023, with the interest coverage ratio increasing to 4.32, indicating an improved ability to cover interest payments.
By 2024, the interest coverage ratio further improved to 4.69, suggesting a stronger financial position in terms of covering interest expenses.
Overall, the interest coverage ratios for Domino's Pizza Inc Common Stock have shown some fluctuations but generally demonstrate the company's ability to generate sufficient operating income to cover its interest obligations. Investors and creditors may view this stability positively as it indicates the company's financial health and ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2024