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Domino's Pizza Enterprises (Domino's Pizza Enterprises) Interest Coverage : 7.21 (As of Dec. 2023)


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What is Domino's Pizza Enterprises 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. Domino's Pizza Enterprises's Operating Income for the six months ended in Dec. 2023 was $104 Mil. Domino's Pizza Enterprises's Interest Expense for the six months ended in Dec. 2023 was $-14 Mil. Domino's Pizza Enterprises's interest coverage for the quarter that ended in Dec. 2023 was 7.21. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Domino's Pizza Enterprises's Interest Coverage or its related term are showing as below:

DPZUF' s Interest Coverage Range Over the Past 10 Years
Min: 6.28   Med: 26.34   Max: 47.34
Current: 10.13


DPZUF's Interest Coverage is ranked better than
60.47% of 258 companies
in the Restaurants industry
Industry Median: 6.76 vs DPZUF: 10.13

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


Domino's Pizza Enterprises Interest Coverage Historical Data

The historical data trend for Domino's Pizza Enterprises'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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Domino's Pizza Enterprises Interest Coverage Chart

Domino's Pizza Enterprises Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.00 23.11 34.30 33.27 15.32

Domino's Pizza Enterprises Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.34 275.93 12.76 20.22 7.21

Competitive Comparison of Domino's Pizza Enterprises's Interest Coverage

For the Restaurants subindustry, Domino's Pizza Enterprises'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.


Domino's Pizza Enterprises's Interest Coverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Domino's Pizza Enterprises's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Domino's Pizza Enterprises's Interest Coverage falls into.



Domino's Pizza Enterprises 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.

Domino's Pizza Enterprises's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Domino's Pizza Enterprises's Interest Expense was $-12 Mil. Its Operating Income was $186 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,073 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2023 )/Interest Expense (A: Jun. 2023 )
=-1*186.419/-12.171
=15.32

Domino's Pizza Enterprises's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Domino's Pizza Enterprises's Interest Expense was $-14 Mil. Its Operating Income was $104 Mil. And its Long-Term Debt & Capital Lease Obligation was $979 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*103.81/-14.392
=7.21

* 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.

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


Domino's Pizza Enterprises  (OTCPK:DPZUF) 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 .


Domino's Pizza Enterprises Interest Coverage Related Terms

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Domino's Pizza Enterprises (Domino's Pizza Enterprises) Business Description

Traded in Other Exchanges
Address
485 Kingsford Smith Drive, Level 1, KSD1, Hamilton, Brisbane, QLD, AUS, 4007
Domino's Pizza Enterprises is engaged in the operation of fast-food pizza outlets and franchise service. The company holds the exclusive master franchise rights for the Domino's brand and network in Australia, New Zealand, Japan, Singapore, Malaysia, Taiwan, Germany, France, Belgium, Luxembourg, and the Netherlands. It entered the German market via a joint venture and acquisition. The Domino's brand is owned by NYSE-listed Domino's Pizza, Inc.

Domino's Pizza Enterprises (Domino's Pizza Enterprises) Headlines