Dine Brands Global (Dine Brands Global) Interest Coverage

: 2.44 (As of Dec. 2023)

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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. Dine Brands Global's Operating Income for the three months ended in Dec. 2023 was $45.2 Mil. Dine Brands Global's Interest Expense for the three months ended in Dec. 2023 was $-18.5 Mil. Dine Brands Global's interest coverage for the quarter that ended in Dec. 2023 was 2.44. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Dine Brands Global Inc interest coverage is 2.68, which is low.

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

DIN' s Interest Coverage Range Over the Past 10 Years
Min: 1.39 Med: 2.88 Max: 3.69
Current: 2.68

DIN's Interest Coverage is ranked worse than
74.22% of 256 companies
in the Restaurants industry
Industry Median: 6.705 vs DIN: 2.68

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

Dine Brands Global Interest Coverage Historical Data

The historical data trend for Dine Brands Global'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.

Dine Brands Global Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

3.45

1.39

3.04

2.89

2.68

Dine Brands Global Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																2.25	3.38	2.63	2.41	2.44

Competitive Comparison

For the Restaurants subindustry, Dine Brands Global'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.

Dine Brands Global Interest Coverage Distribution

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

* The bar in red indicates where Dine Brands Global's Interest Coverage falls into.

Dine Brands Global 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.

Dine Brands Global'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, Dine Brands Global's Interest Expense was $-70.0 Mil. Its Operating Income was $187.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,415.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	187.704	/	-70.047
	=	2.68

Dine Brands Global's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Dine Brands Global's Interest Expense was $-18.5 Mil. Its Operating Income was $45.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,415.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	45.195	/	-18.498
	=	2.44

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

Dine Brands Global (NYSE:DIN) 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 .

Dine Brands Global Interest Coverage Related Terms

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

Dine Brands Global (Dine Brands Global) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Dine Brands Global Inc (NYSE:DIN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

450 North Brand Boulevard, Glendale, CA, USA, 91203-2346

Website

https://www.dinebrands.com

Dine Brands Global Inc owns and franchises thousands of restaurants under the Applebee's and International House of Pancakes names. Almost all company restaurants are located in the United States and franchised. Royalty revenue, which the company gets from franchisees based on franchisees' sales, accounts for roughly three-quarters of total company revenue. The company also earns revenue by leasing restaurant sites to franchisees. The company has four reportable segments Franchise operations, (an aggregation of Applebee's and IHOP franchise operations), Rental operations, Financing operations, and Company-operated restaurant operations. The majority of revenue is derived from the Franchise operations segment.

Executives

Vance Yuwen Chang	officer: Chief Financial Officer	5780 UPLANDER WAY, CULVER CITY CA 90230
John W. Peyton	director, officer: Chief Executive Officer	175 PARK AVENUE, MADISON NJ 07940
Michael Hyter	director	450 N BRAND BLVD., GLENDALE CA 91203
Jay D. Johns	officer: President, IHOP Business Unit	450 NORTH BRAND BLVD, GLENDALE CA 91203
Lilian Tomovich	director	2028 GROUSE STREET, LAS VEGAS NV 89134
Richard J Dahl	director	DOLE FOOD CO, 1 DOLE DRIVE, WESTLAKE CA 91362
Caroline W Nahas	director	450 NORTH BRAND BLVD 7TH FL, GLENDALE CA 91203
Martha Poulter	director	C/O STARWOOD HOTELS & RESORTS WORLDWIDE, ONE STARPOINT, STAMFORD CT 06902
Christine K. Son	officer: SVP, Legal, GC and Secretary	450 N. BRAND BLVD., 7TH FLOOR, GLENDALE CA 91203
Susan Collyns	director	6053 W CENTURY BLVD STE 1100, C/O CALIFORNIA PIZZA KITCHEN INC, LOS ANGLES CA 90045-6430
Tony E. Moralejo	officer: President, Applebee's	450 N BRAND BLVD, 7TH FLOOR, GLENDALE CA 91203
Douglas M Pasquale	director	245 FICHER AVE STE D-1, COSTA MESA CA 92626
Artie Starrs	director	2180 RUTHERFORD ROAD, CARLSBAD CA 92008
Gregg Lemkau	director	645 FIFTH AVENUE, 21ST FLOOR, NEW YORK NY 10022
Marc R Lisker	director	645 FIFTH AVENUE, 21ST FLOOR, NEW YORK NY 10022-5910