Wingstop Inc (WING)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	112,594	111,651	105,080	100,998	91,933	77,280	74,031	70,560	73,756	69,619	63,088	63,722	57,390	56,203	53,851	44,601	42,901	42,686	41,093	40,732
Interest expense (ttm)	US$ in thousands	18,227	18,647	19,869	21,611	21,230	19,674	17,656	15,394	14,984	15,248	15,929	16,419	16,782	16,948	16,786	16,871	17,136	16,452	14,754	12,797
Interest coverage		6.18	5.99	5.29	4.67	4.33	3.93	4.19	4.58	4.92	4.57	3.96	3.88	3.42	3.32	3.21	2.64	2.50	2.59	2.79	3.18

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $112,594K ÷ $18,227K
= 6.18

The interest coverage ratio for Wingstop Inc has shown a generally positive trend over the last five quarters, indicating the company's ability to cover its interest obligations from its operating income. The ratio has consistently been above 1, suggesting that the company's earnings are sufficient to cover its interest expenses.

The ratio improved from a low of 2.50 in March 2020 to a high of 6.18 in December 2023, reflecting a strengthening ability to meet interest payments. This positive trend is a good indicator of the company's financial stability and ability to service its debt.

Overall, Wingstop Inc's interest coverage ratio has shown resilience and improvement, which is a positive sign for investors and creditors as it indicates the company's capacity to meet its financial obligations.