Jack In The Box has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Jack In The Box Inc displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Jack In The Box's Interest Coverage for the quarter that ended in Jan. 2025 was 3.07.
Jack In The Box's debt to revenue ratio for the quarter that ended in Jan. 2025 was 1.69.
As of today, Jack In The Box's Altman Z-Score is 1.65.
Competitive Comparison of Jack In The Box's Financial Strength
For the Restaurants subindustry, Jack In The Box's Financial Strength, along with its competitors' market caps and Financial Strength 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.
Jack In The Box's Financial Strength Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Jack In The Box's Financial Strength distribution charts can be found below:
* The bar in red indicates where Jack In The Box's Financial Strength falls into.
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:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Jack In The Box has a Z-score of 1.65, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.65 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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.
Jack In The Box (NAS:JACK) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Jack In The Box has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Jack In The Box Financial Strength Related Terms
Thank you for viewing the detailed overview of Jack In The Box's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Jack In The Box Inc operates quick-service restaurants and fast-casual restaurants across various states in the United States of America under the Jack in the Box and Del Taco brands. The company's menu offers burgers, tacos, regular and curly fries, specialty sandwiches, salads, and ice cream shakes. These foods are available with the option of customization as per customer requirements. The company also offers catering and delivery services to its customers. Jack in the Box and Del Taco restaurant brands are the two reportable operating segments, of which, Jack in the Box generates maximum revenue for the company.
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