The Wendy’s Co (WEN)
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 | 396,294 | 392,283 | 400,283 | 404,485 | 403,479 | 395,992 | 388,116 | 366,431 | 343,221 | 313,049 | 281,027 | 281,483 | 294,158 | 319,507 | 333,107 | 305,118 | 284,150 | 251,252 | 242,115 | 262,744 |
| Interest expense (ttm) | US$ in thousands | 123,881 | 123,063 | 122,750 | 122,891 | 124,061 | 125,711 | 126,670 | 127,659 | 122,319 | 116,601 | 110,685 | 106,764 | 109,185 | 114,031 | 117,117 | 117,998 | 117,737 | 115,724 | 114,568 | 115,414 |
| Interest coverage | 3.20 | 3.19 | 3.26 | 3.29 | 3.25 | 3.15 | 3.06 | 2.87 | 2.81 | 2.68 | 2.54 | 2.64 | 2.69 | 2.80 | 2.84 | 2.59 | 2.41 | 2.17 | 2.11 | 2.28 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $396,294K ÷ $123,881K
= 3.20
The interest coverage ratio of The Wendy’s Co has shown a consistent upward trend over the past few years, indicating the company's ability to meet its interest obligations. Starting at 2.28 in March 31, 2020, the ratio has steadily increased to reach 3.20 by December 31, 2024. This suggests that the company's earnings before interest and taxes (EBIT) are sufficient to cover its interest expenses, with a higher ratio indicating a stronger ability to fulfill debt obligations. The improving trend in the interest coverage ratio reflects positively on the company's financial health and its capacity to manage debt effectively.
Peer comparison
Dec 31, 2024