Jack In The Box Inc (JACK)
Interest coverage
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 82,536 | 278,753 | 248,270 | 289,946 | 230,584 |
| Interest expense | US$ in thousands | 4,830 | 5,095 | 5,563 | 5,684 | 5,738 |
| Interest coverage | 17.09 | 54.71 | 44.63 | 51.01 | 40.19 |
September 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $82,536K ÷ $4,830K
= 17.09
Interest coverage measures a company's ability to meet its interest payment obligations with its operating income. Jack In The Box Inc's interest coverage ratio has been fluctuating over the past five years. In Sep 2024, the interest coverage ratio decreased to 17.09, indicating a decline in the company's ability to cover its interest expenses compared to the previous year. However, the ratio remains at a relatively healthy level, suggesting that the company's operating income is still sufficient to meet its interest payments.
Compared to Sep 2023, where the interest coverage ratio was 54.71, the current ratio shows a significant decrease. Despite this decline, Jack In The Box Inc's interest coverage ratio in Sep 2024 is still above 1, indicating that the company is generating enough operating income to cover its interest expenses by 17 times.
In the context of the past five years, Jack In The Box Inc's interest coverage ratio has generally been strong, ranging from 40.19 to 54.71. This indicates the company's consistent ability to meet its interest obligations comfortably. Overall, while there was a decline in the interest coverage ratio in Sep 2024 compared to the previous year, Jack In The Box Inc's financial position in terms of interest coverage remains robust.
Peer comparison
Sep 30, 2024