Jack In The Box Inc (JACK)
Interest coverage
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 278,753 | 248,270 | 289,946 | 230,584 | 202,223 |
| Interest expense | US$ in thousands | 5,095 | 5,563 | 5,684 | 5,738 | 3,121 |
| Interest coverage | 54.71 | 44.63 | 51.01 | 40.19 | 64.79 |
September 30, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $278,753K ÷ $5,095K
= 54.71
The interest coverage ratio for Jack In The Box Inc has been consistently strong over the past five years, indicating the company's ability to meet its interest payment obligations with ease. The ratio has ranged from a low of 40.19 in 2020 to a high of 64.79 in 2019, with an average of approximately 51.47 over the period. This suggests that the company's operating profits have been more than sufficient to cover its interest expenses, which is a positive sign of financial health and stability. The upward trend in the ratio from 2020 to 2023 further demonstrates the company's improving ability to service its debt and indicates effective financial management.
Peer comparison
Sep 30, 2023