The Chefs' Warehouse (The Chefs' Warehouse) Interest Coverage

: 3.16 (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. The Chefs' Warehouse's Operating Income for the three months ended in Dec. 2023 was $38 Mil. The Chefs' Warehouse's Interest Expense for the three months ended in Dec. 2023 was $-12 Mil. The Chefs' Warehouse's interest coverage for the quarter that ended in Dec. 2023 was 3.16. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for The Chefs' Warehouse's Interest Coverage or its related term are showing as below:

CHEF' s Interest Coverage Range Over the Past 10 Years
Min: 0.61 Med: 2.22 Max: 4.04
Current: 2.22

CHEF's Interest Coverage is ranked worse than
82.75% of 255 companies
in the Retail - Defensive industry
Industry Median: 9.26 vs CHEF: 2.22

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

The Chefs' Warehouse Interest Coverage Historical Data

The historical data trend for The Chefs' Warehouse'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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The Chefs' Warehouse Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

2.77

0.61

1.96

2.22

The Chefs' Warehouse Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																1.23	1.19	2.11	2.25	3.16

Competitive Comparison

For the Food Distribution subindustry, The Chefs' Warehouse'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.

The Chefs' Warehouse Interest Coverage Distribution

For the Retail - Defensive industry and Consumer Defensive sector, The Chefs' Warehouse's Interest Coverage distribution charts can be found below:

* The bar in red indicates where The Chefs' Warehouse's Interest Coverage falls into.

The Chefs' Warehouse 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.

The Chefs' Warehouse'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, The Chefs' Warehouse's Interest Expense was $-45 Mil. Its Operating Income was $101 Mil. And its Long-Term Debt & Capital Lease Obligation was $849 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	100.943	/	-45.474
	=	2.22

The Chefs' Warehouse's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, The Chefs' Warehouse's Interest Expense was $-12 Mil. Its Operating Income was $38 Mil. And its Long-Term Debt & Capital Lease Obligation was $849 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	38.155	/	-12.083
	=	3.16

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

The Chefs' Warehouse (NAS:CHEF) 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 .

The Chefs' Warehouse Interest Coverage Related Terms

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The Chefs' Warehouse (The Chefs' Warehouse) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » The Chefs' Warehouse Inc (NAS:CHEF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

2CF:Germany

Address

100 East Ridge Road, Ridgefield, CT, USA, 06877

Website

https://www.chefswarehouse.com

The Chefs' Warehouse Inc is a specialty food distributor in major metropolitan areas across the United States and Canada. The company's product portfolio is primarily comprised of imported and local specialty food products such as cheese, cooking oils, chocolates, dried food, baking products, meats, and other food products. The Chefs' Warehouse operates via one reporting segment called Food Product Distribution. Operations are concentrated on the east, mid and west coasts of the U.S. The company provides service primarily to restaurants, clubs, hotels, caterers, schools, bakeries, casinos and speciality food stores.

Executives

Tim Mccauley	officer: Chief Accounting Officer	100 EAST RIDGE ROAD, RIDGEFIELD CT 06877
Joseph M. Cugine	director	16859 CAMINETTO COURT, NAPLES, NAPLES FL 34110
Katherine Oliver	director	100 EAST RIDGE ROAD, RIDGEFIELD CT 06877
Christina Polychroni	officer: Chief Human Resources Officer	C/O THE CHEFS' WAREHOUSE, 100 EAST RIDGE ROAD, RIDGEFIELD CT 06877
Alexandros Aldous	officer: General Counsel	100 EAST RIDGE ROAD, RIDGEFIELD CT 06877
James Leddy	officer: Chief Financial Officer	C/O THE CHEFS' WAREHOUSE INC., 100 EAST RIDGE ROAD, RIDGEFIELD CT 06877
Christopher Pappas	director, officer: President and CEO	100 EAST RIDGE ROAD, RIDGEFIELD CT 06877
Patricia Lecouras	officer: Chief Human Resources Officer	100 EAST RIDGE ROAD, RIDGEFIELD CT 06877
John Pappas	director, officer: Vice Chairman	100 EAST RIDGE ROAD, RIDGEFIELD CT 06877
Aylwin B Lewis	director	111 N. CANAL, SUITE 850, CHICAGO IL 60606
Ivy Brown	director	17324 E HIDDEN GREEN CT, RIO VERDE AZ 85263
John A Couri	director	63 COPPS HILL RD, RIDGEFIELD CT 06877
David E. Schreibman	director	1852 N. FREMONT STREET, CHICAGO IL 60614
Christina Carroll	director	16529 ADLON ROAD, ENCINO CA 91436
John D Austin	officer: Chief Financial Officer