Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. El Pollo Loco Holdings's
Operating Income
for the
three
months ended in Mar. 2024 was $9.7 Mil. El Pollo Loco Holdings's Interest Expense for the
three
months ended in Mar. 2024 was $-1.6 Mil.
El Pollo Loco Holdings's interest coverage for the quarter that ended in Mar. 2024 was 6.21.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for El Pollo Loco Holdings's Interest Coverage or its related term are showing as below:
LOCO'
s Interest Coverage Range Over the Past 10 Years
Min: 2.67 Med: 12.21 Max: 24.26
Current: 7.2
LOCO's Interest Coverage is ranked better than 51.54% of 260
companies
in the Restaurants industry
Industry Median: 6.76
vs LOCO: 7.20
El Pollo Loco Holdings Interest Coverage Historical Data
The historical data trend for El Pollo Loco Holdings's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
Competitive Comparison of El Pollo Loco Holdings's Interest Coverage
For the Restaurants subindustry, El Pollo Loco Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
El Pollo Loco Holdings's Interest Coverage Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, El Pollo Loco Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where El Pollo Loco Holdings's Interest Coverage falls into.
El Pollo Loco Holdings Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
El Pollo Loco Holdings (NAS:LOCO) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
El Pollo Loco Holdings Interest Coverage Related Terms
Thank you for viewing the detailed overview of El Pollo Loco Holdings's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
El Pollo Loco Holdings (El Pollo Loco Holdings) Business Description
El Pollo Loco Holdings Inc operates and franchises hundreds of fast-casual chicken restaurants in the United States. Restaurant locations are typically free-standing and include drive-thrus, and menus include many low-priced options. Poultry is the company's largest food cost, accounting for roughly 38% of total food and paper cost, and the company manages that commodity price risk by using multiple suppliers and entering supply contracts of varying lengths depending on market conditions.
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