Papa John's International Inc (PZZA)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | — | — |
| Debt-to-equity ratio | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — |
Based on the provided data, Papa John's International Inc. has consistently maintained a debt-to-assets ratio of 0.00 across all the years from 2020 to 2024. This indicates that the company has not utilized debt financing to fund its operations or investments during this period.
Additionally, the debt-to-capital ratio, debt-to-equity ratio, and financial leverage ratio are marked as "—" for all the years, suggesting that there is not enough information available to calculate these solvency ratios.
Overall, based on the available data, it can be inferred that Papa John's International Inc. has a very strong solvency position with minimal to no debt obligations in relation to its assets, capital, and equity. This may indicate a conservative financing strategy or strong operating cash flows that allow the company to support its operations without relying on debt.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.68 | 3.41 | 4.32 | 8.76 | 5.13 |
The interest coverage ratio for Papa John's International Inc has shown fluctuations over the years. In 2020, the ratio was 5.13, indicating that the company earned more than five times the amount needed to cover its interest expenses. This improved significantly to 8.76 in 2021, reflecting stronger earnings relative to interest payments.
However, there was a notable decline in the interest coverage ratio to 4.32 in 2022, suggesting that the company's ability to cover interest expenses decreased. This trend continued in 2023 with a ratio of 3.41, indicating a further deterioration in the company's ability to meet interest payments.
In 2024, the interest coverage ratio slightly improved to 3.68 but remained at a level that raises concerns about Papa John's ability to comfortably cover its interest obligations. Overall, these fluctuations in the interest coverage ratio highlight the importance of monitoring the company's financial performance and debt management strategies to ensure sustainable operations.