Mister Car Wash (Mister Car Wash) Interest Coverage : 2.05 (As of Mar. 2024)

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What is Mister Car Wash Interest Coverage?

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. Mister Car Wash's Operating Income for the three months ended in Mar. 2024 was $41.0 Mil. Mister Car Wash's Interest Expense for the three months ended in Mar. 2024 was $-20.0 Mil. Mister Car Wash's interest coverage for the quarter that ended in Mar. 2024 was 2.05. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Mister Car Wash's Interest Coverage or its related term are showing as below:

MCW' s Interest Coverage Range Over the Past 10 Years
Min: 1.13 Med: 2.01 Max: 4.46
Current: 2.25

MCW's Interest Coverage is ranked worse than
86.25% of 80 companies
in the Personal Services industry
Industry Median: 9.96 vs MCW: 2.25

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Mister Car Wash Interest Coverage Historical Data

The historical data trend for Mister Car Wash'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.

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Mister Car Wash Interest Coverage Chart

Mister Car Wash Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

1.13

1.64

4.46

2.37

Mister Car Wash Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial													2.56	2.62	2.32	2.03	2.05

Competitive Comparison of Mister Car Wash's Interest Coverage

For the Personal Services subindustry, Mister Car Wash'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.

Mister Car Wash's Interest Coverage Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Mister Car Wash's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Mister Car Wash's Interest Coverage falls into.

Mister Car Wash 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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Mister Car Wash's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Mister Car Wash's Interest Expense was $-75.1 Mil. Its Operating Income was $178.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,720.9 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	178.27	/	-75.104
	=	2.37

Mister Car Wash's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Mister Car Wash's Interest Expense was $-20.0 Mil. Its Operating Income was $41.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,738.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	41.012	/	-20.024
	=	2.05

The higher the ratio, the stronger the company's Financial Strength is.

Mister Car Wash (NYSE:MCW) 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 .

Mister Car Wash Interest Coverage Related Terms

Thank you for viewing the detailed overview of Mister Car Wash's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Mister Car Wash (Mister Car Wash) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Personal Services » Mister Car Wash Inc (NYSE:MCW) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

222 E 5th Street, Tucson, AZ, USA, 85705

Website

https://www.mistercarwash.com

Mister Car Wash Inc is a car wash brand offering express exterior and interior cleaning services. Express Exterior Locations offers express exterior cleaning services and Interior Cleaning Locations offers both express exterior and interior cleaning services. The company recognizes revenue in two main streams. It offers an Unlimited Wash Club (UWC) program to its customers. The UWC program entitles the customer to unlimited washes for a monthly fee, cancellable at any time. Second, revenue from the car wash and quick lube services.

Executives

Joseph Duane Matheny	officer: See Remarks	C/O MISTER CAR WASH, INC., 222 E 5TH STREET, TUCSON AZ 85705
Markus Hartmann	officer: General Counsel	968 JAMES STREET, SYRACUSE NY 13203
John Lo-minn Lai	director, officer: Chief Executive Officer	C/O MISTER CAR WASH, INC., 222 E 5TH STREET, TUCSON AZ 85705
Myra I. Chimienti	officer: See Remarks	C/O MISTER CAR WASH, INC., 222 E 5TH STREET, TUCSON AZ 85705
Jedidiah Marc Gold	officer: Chief Financial Officer	C/O MISTER CAR WASH, INC., 222 E 5TH STREET, TUCSON AZ 85705
Mary Lyn Porter	officer: Chief People Officer	C/O MISTER CAR WASH, INC., 222 E 5TH STREET, TUCSON AZ 85705
Casey Penn Lindsay	officer: See Remarks	C/O MISTER CAR WASH, INC., 222 E 5TH STREET, TUCSON AZ 85705
Lisa Bossard Funk	officer: General Counsel	C/O MISTER CAR WASH, INC., 222 E 5TH STREET, TUCSON AZ 85705
Veronica Rogers	director	C/O MISTER CAR WASH, INC., 222 E 5TH STREET, TUCSON AZ 85705
Ronald Kirk	director	TEXAS INSTRUMENTS INCORPORATED, 12500 TI BOULEVARD MS 3999, DALLAS TX 75243
Green Equity Investors Vi, L.p.	director, 10 percent owner	11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
John Kristofer Galashan	director, 10 percent owner	LEONARD, GREEN & PARTNERS, 11111 SANTA MONICA BLVD., SUITE 2000, LOS ANGELES CA 90025
Lgp Associates Vi-a Llc	director, 10 percent owner	11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
Susan E Docherty	director	THE BRINK'S COMPANY, 1801 BAYBERRY COURT, 4TH FLOOR, RICHMOND VA 23226
Lgp Associates Vi-b Llc	director, 10 percent owner	11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025