Domino's Pizza Inc Common Stock (DPZ)
Interest coverage
| Dec 31, 2024 | Sep 8, 2024 | Jun 16, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 10, 2023 | Jun 18, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 11, 2022 | Jun 19, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 12, 2021 | Jun 20, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 6, 2020 | Jun 14, 2020 | Mar 22, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 918,085 | 902,210 | 893,238 | 864,494 | 848,915 | 834,099 | 791,014 | 786,371 | 771,087 | 777,361 | 780,404 | 793,041 | 817,511 | 804,287 | 786,337 | 759,590 | 727,296 | 688,783 | 670,402 | 646,024 |
| Interest expense (ttm) | US$ in thousands | 195,870 | 195,493 | 195,563 | 195,774 | 196,475 | 197,369 | 198,010 | 197,929 | 198,254 | 198,144 | 198,230 | 199,256 | 191,806 | 185,186 | 178,268 | 172,118 | 172,166 | 165,948 | 161,095 | 155,234 |
| Interest coverage | 4.69 | 4.62 | 4.57 | 4.42 | 4.32 | 4.23 | 3.99 | 3.97 | 3.89 | 3.92 | 3.94 | 3.98 | 4.26 | 4.34 | 4.41 | 4.41 | 4.22 | 4.15 | 4.16 | 4.16 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $918,085K ÷ $195,870K
= 4.69
The interest coverage ratio for Domino's Pizza Inc Common Stock has gradually decreased from 4.16 in March 2022 to 4.69 in December 2024. This ratio indicates the company's ability to cover its interest expenses with its operating income. A higher ratio is generally preferred as it suggests a stronger ability to meet interest obligations. Therefore, the downward trend in Domino's Pizza Inc's interest coverage ratio may raise concerns about its ability to comfortably meet its interest payments in the future. It is important for investors and stakeholders to continue monitoring this ratio to assess the company's financial health and debt management capability.
Peer comparison
Dec 31, 2024