Papa John's International Inc (PZZA)

Interest coverage

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 166,247 179,282 145,921 154,576 149,111 142,775 130,368 133,898 110,537 112,121 133,390 140,944 177,254 157,882 141,701 124,270 88,997 67,212 47,590 31,287
Interest expense (ttm) US$ in thousands 42,578 44,596 45,345 45,724 43,682 38,968 35,213 30,019 25,262 24,516 20,872 18,440 17,823 15,372 15,029 15,007 15,327 15,777 16,390 17,035
Interest coverage 3.90 4.02 3.22 3.38 3.41 3.66 3.70 4.46 4.38 4.57 6.39 7.64 9.95 10.27 9.43 8.28 5.81 4.26 2.90 1.84

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $166,247K ÷ $42,578K
= 3.90

Papa John's International Inc's interest coverage ratio has shown a fluctuating trend over the past few years, starting at 1.84 in March 2020 and gradually increasing to a peak of 10.27 in September 2021. This indicates the company's ability to cover its interest expenses improved significantly during this period. However, the ratio began to decline thereafter, reaching 3.90 by December 2024.

Overall, the interest coverage ratio for Papa John's International Inc has experienced some volatility but generally remained at levels that suggest the company has been able to meet its interest obligations comfortably. It is important for investors and stakeholders to monitor this ratio closely to ensure the company's financial health and ability to manage its debt obligations effectively.