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Restaurant Brands NZ (ASX:RBD) Interest Coverage : 0.19 (As of Jun. 2024)


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What is Restaurant Brands NZ 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. Restaurant Brands NZ's Operating Income for the six months ended in Jun. 2024 was A$5 Mil. Restaurant Brands NZ's Interest Expense for the six months ended in Jun. 2024 was A$-26 Mil. Restaurant Brands NZ's interest coverage for the quarter that ended in Jun. 2024 was 0.19. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Restaurant Brands NZ's Interest Coverage or its related term are showing as below:


ASX:RBD's Interest Coverage is not ranked *
in the Restaurants industry.
Industry Median: 6.76
* Ranked among companies with meaningful Interest Coverage only.

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


Restaurant Brands NZ Interest Coverage Historical Data

The historical data trend for Restaurant Brands NZ'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.

* Premium members only.

Restaurant Brands NZ Interest Coverage Chart

Restaurant Brands NZ Annual Data
Trend Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.09 - - - -

Restaurant Brands NZ Semi-Annual Data
Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 0.37 - - - 0.19

Competitive Comparison of Restaurant Brands NZ's Interest Coverage

For the Restaurants subindustry, Restaurant Brands NZ'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.


Restaurant Brands NZ's Interest Coverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Restaurant Brands NZ's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Restaurant Brands NZ's Interest Coverage falls into.



Restaurant Brands NZ 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.

Restaurant Brands NZ'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, Restaurant Brands NZ's Interest Expense was A$-19 Mil. Its Operating Income was A$-82 Mil. And its Long-Term Debt & Capital Lease Obligation was A$896 Mil.

Restaurant Brands NZ did not have earnings to cover the interest expense.

Restaurant Brands NZ's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the six months ended in Jun. 2024, Restaurant Brands NZ's Interest Expense was A$-26 Mil. Its Operating Income was A$5 Mil. And its Long-Term Debt & Capital Lease Obligation was A$887 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*5.109/-26.428
=0.19

* 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.


Restaurant Brands NZ  (ASX:RBD) 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 .


Restaurant Brands NZ Interest Coverage Related Terms

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


Restaurant Brands NZ Business Description

Traded in Other Exchanges
Address
666 Great South Road, Level 3, Building 7, Central Park, Penrose, Auckland, NTL, NZL, 1051
Restaurant Brands NZ Ltd, together with its subsidiaries, operates quick service and takeaway restaurant concepts in New Zealand, Australia, California, and Hawaii. The company's business includes KFC and Carl's Jr. It has various brands, consisting of KFC, Taco Bell, and Carl's Jr. stores.

Restaurant Brands NZ Headlines

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