Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Sonic's annualized positive value of Interest Expense for the quarter that ended in Aug. 2018 was $34.6 Mil. Sonic's average total debt for the quarter that ended in Aug. 2018 was $722.2 Mil. Therefore, Sonic's annualized Effective Interest Rate on Debt % for the quarter that ended in Aug. 2018 was 4.79%.
Sonic Effective Interest Rate on Debt % Historical Data
The historical data trend for Sonic's Effective Interest Rate on Debt % 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.
Competitive Comparison of Sonic's Effective Interest Rate on Debt %
For the Restaurants subindustry, Sonic's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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.
Sonic's Effective Interest Rate on Debt % Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Sonic's Effective Interest Rate on Debt % distribution charts can be found below:
* The bar in red indicates where Sonic's Effective Interest Rate on Debt % falls into.
Sonic Effective Interest Rate on Debt % Calculation
Sonic's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Aug. 2018 is calculated as
* 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.
In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data,
the Interest Expense data used here is four times the quarterly (Aug. 2018) interest expense data.
Effective Interest Rate on Debt % is displayed in the 30-year financial page.
Sonic (NAS:SONC) Effective Interest Rate on Debt % Explanation
Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.
Sonic Effective Interest Rate on Debt % Related Terms
Thank you for viewing the detailed overview of Sonic's Effective Interest Rate on Debt % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sonic Corp operates and franchises drive-in restaurants throughout the United States. The restaurants typically consist of a building that houses only a kitchen to go along with 16 to 24 parking spaces that have their own payment terminals, intercom speakers, and menu boards. Carhops serve customers in their cars. Many locations also have a drive-thru lane and patio seating as alternatives. Sonic franchises roughly 90% of its restaurants, and the royalty revenue the company earns on franchise sales contributes roughly a quarter of total company revenue. Company-operated stores provide the balance of total revenue. Sonic owns the property on which hundreds of its restaurants are located. For those properties that house franchised stores, franchisees lease from the company.
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