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 | ||
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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.
Peer comparison
Dec 31, 2024