Jack In The Box Inc (JACK)

Interest coverage

		Jan 21, 2024	Sep 30, 2023	Jul 9, 2023	Apr 16, 2023	Jan 22, 2023	Sep 30, 2022	Jul 10, 2022	Apr 17, 2022	Jan 23, 2022	Sep 30, 2021	Jun 30, 2021	Apr 11, 2021	Jan 17, 2021	Sep 30, 2020	Jul 5, 2020	Apr 12, 2020	Jan 19, 2020	Sep 30, 2019	Jul 7, 2019	Apr 14, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	257,302	278,753	310,531	298,856	275,461	248,270	232,602	248,116	274,760	289,946	287,197	281,606	249,560	230,584	213,097	199,568	213,849	202,223	189,355	217,434
Interest expense (ttm)	US$ in thousands	4,972	5,095	5,198	5,290	5,457	5,563	5,660	5,731	5,684	5,684	5,705	5,705	5,672	5,738	5,555	4,943	4,205	3,121	2,438	2,302
Interest coverage		51.75	54.71	59.74	56.49	50.48	44.63	41.10	43.29	48.34	51.01	50.34	49.36	44.00	40.19	38.36	40.37	50.86	64.79	77.67	94.45

January 21, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $257,302K ÷ $4,972K
= 51.75

Based on the data provided, Jack In The Box, Inc.'s interest coverage ratio has been relatively stable over the past eight quarters, ranging from 2.86 to 3.51. This ratio indicates the company's ability to meet its interest obligations from its operating income.

With an average interest coverage ratio of approximately 3.20 over the past two years, Jack In The Box appears to have a healthy capacity to cover its interest expenses. A ratio above 2.5 is generally considered acceptable, as it suggests that the company is generating sufficient operating income to comfortably meet its interest payments.

While the trend shows some fluctuations, the overall consistency of the interest coverage ratio above 2.5 is a positive indicator of Jack In The Box's financial stability and ability to manage its debt obligations. Investors and creditors may view this as a sign of a well-managed and financially sound company.