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Brinker International Interest Coverage

: 4.01 (As of Mar. 2021)
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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. Brinker International's Operating Income for the three months ended in Mar. 2021 was $57 Mil. Brinker International's Interest Expense for the three months ended in Mar. 2021 was $-14 Mil. Brinker International's interest coverage for the quarter that ended in Mar. 2021 was 4.01. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Brinker International Inc interest coverage is 1.28, which is low.

NYSE:EAT' s Interest Coverage Range Over the Past 10 Years
Min: 1.28   Med: 8.26   Max: 10.91
Current: 1.28

1.28
10.91

NYSE:EAT's Interest Coverage is ranked lower than
83% of the 132 Companies
in the Restaurants industry.

( Industry Median: 4.77 vs. NYSE:EAT: 1.28 )

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


Brinker International Interest Coverage Historical Data

* 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.

* Premium members only.

Brinker International Annual Data
Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.17 5.49 4.42 3.67 1.85

Brinker International Quarterly Data
Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only 4.22 - 1.93 1.85 4.01

Competitive Comparison
* 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.


Brinker International Interest Coverage Distribution

* The bar in red indicates where Brinker International's Interest Coverage falls into.



Brinker International 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.


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

Brinker International's Interest Coverage for the fiscal year that ended in Jun. 2020 is calculated as

Here, for the fiscal year that ended in Jun. 2020, Brinker International's Interest Expense was $-60 Mil. Its Operating Income was $110 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,270 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2020 )/Interest Expense (A: Jun. 2020 )
=-1*110/-59.6
=1.85

Brinker International's Interest Coverage for the quarter that ended in Mar. 2021 is calculated as

Here, for the three months ended in Mar. 2021, Brinker International's Interest Expense was $-14 Mil. Its Operating Income was $57 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,041 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2021 )/Interest Expense (Q: Mar. 2021 )
=-1*56.5/-14.1
=4.01

* 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.


Brinker International  (NYSE:EAT) 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 .


Brinker International Interest Coverage Related Terms


Brinker International Interest Coverage Headlines

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