Wingstop Inc (WING)
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 | 165,616 | 153,590 | 144,424 | 129,660 | 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 |
| Interest expense (ttm) | US$ in thousands | 21,292 | 19,764 | 19,154 | 18,198 | 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 |
| Interest coverage | 7.78 | 7.77 | 7.54 | 7.12 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $165,616K ÷ $21,292K
= 7.78
The interest coverage ratio of Wingstop Inc has shown a steady improvement over the years, indicating the company's increasing ability to meet its interest obligations. The ratio increased from 2.64 as of March 31, 2020, to 7.78 as of December 31, 2024. This signifies that the company's operating income is now more than sufficient to cover its interest expenses, providing a comfortable buffer for creditors and investors. The consistent upward trend in the interest coverage ratio reflects the company's improving financial health and suggests a lower risk of default on its debt obligations. Overall, Wingstop Inc's interest coverage ratio demonstrates a favorable financial position and a strong ability to service its debt.
Peer comparison
Dec 31, 2024