Wingstop Inc (WING)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 165,616 | 112,594 | 91,933 | 73,756 | 57,390 |
| Interest expense | US$ in thousands | 21,292 | 18,227 | 21,230 | 14,984 | 16,782 |
| Interest coverage | 7.78 | 6.18 | 4.33 | 4.92 | 3.42 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $165,616K ÷ $21,292K
= 7.78
The interest coverage ratio of Wingstop Inc has shown a steady improvement over the past five years. Starting at 3.42 in December 31, 2020, the ratio increased to 4.92 in December 31, 2021, indicating the company's ability to comfortably cover its interest expenses. This trend continued with further improvements to 4.33 in December 31, 2022, 6.18 in December 31, 2023, and 7.78 in December 31, 2024. The consistent upward trend in the interest coverage ratio reflects Wingstop Inc's strengthening capacity to meet its interest obligations, signaling a positive financial health and reduced risk of default on its debt payments.
Peer comparison
Dec 31, 2024