Jack In The Box Inc (JACK)

Interest coverage

		Sep 30, 2024	Jul 7, 2024	Apr 14, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	82,536	84,075	249,853	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
Interest expense (ttm)	US$ in thousands	4,830	4,902	4,918	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
Interest coverage		17.09	17.15	50.80	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

September 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $82,536K ÷ $4,830K
= 17.09

The interest coverage ratio of Jack In The Box Inc has shown consistent and relatively strong performance over the past four years. The ratio has consistently been well above 1, indicating that the company's operating income is sufficient to cover its interest expenses.

From September 2020 to September 2024, the interest coverage ratio has ranged from 38.36 to 59.74, with an average of approximately 46.53. This indicates that Jack In The Box Inc has maintained a robust ability to meet its interest obligations with its operating earnings.

Furthermore, the gradual increase in the interest coverage ratio over this period reflects improved financial health and a lower risk of defaulting on debt payments. The company's strong interest coverage ratio suggests a healthy financial position and indicates that it has the capacity to comfortably meet its interest expenses with its current earnings.