Dutch Bros (Dutch Bros) Interest Coverage : 0.36 (As of Dec. 2023)

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What is Dutch Bros Interest Coverage?

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. Dutch Bros's Operating Income for the three months ended in Dec. 2023 was $2.2 Mil. Dutch Bros's Interest Expense for the three months ended in Dec. 2023 was $-6.1 Mil. Dutch Bros's interest coverage for the quarter that ended in Dec. 2023 was 0.36. The higher the ratio, the stronger the company's financial strength is.

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

BROS' s Interest Coverage Range Over the Past 10 Years
Min: 1.43 Med: 2.94 Max: 12.91
Current: 1.43

BROS's Interest Coverage is ranked worse than
85.71% of 259 companies
in the Restaurants industry
Industry Median: 6.79 vs BROS: 1.43

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

Dutch Bros Interest Coverage Historical Data

The historical data trend for Dutch Bros'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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Dutch Bros Interest Coverage Chart

Dutch Bros Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

12.91

2.94

1.43

Dutch Bros Quarterly Data
	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial											0.54	-	2.16	2.65	0.36

Competitive Comparison of Dutch Bros's Interest Coverage

For the Restaurants subindustry, Dutch Bros'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.

Dutch Bros's Interest Coverage Distribution in the Restaurants Industry

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

* The bar in red indicates where Dutch Bros's Interest Coverage falls into.

Dutch Bros 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.

Dutch Bros'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, Dutch Bros's Interest Expense was $-32.3 Mil. Its Operating Income was $46.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $652.4 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	46.222	/	-32.321
	=	1.43

Dutch Bros's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Dutch Bros's Interest Expense was $-6.1 Mil. Its Operating Income was $2.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $652.4 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	2.179	/	-6.052
	=	0.36

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

Dutch Bros (NYSE:BROS) 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 .

Dutch Bros Interest Coverage Related Terms

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

Dutch Bros (Dutch Bros) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Dutch Bros Inc (NYSE:BROS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

110 SW 4th Street, Grants Pass, OR, USA, 97526

Website

https://www.dutchbros.com

Dutch Bros Inc is an operator and franchisor of drive-thru coffee shops that are focused on serving hand-crafted beverages. The company's hand-crafted beverage-focused lineup features hot and cold espresso-based beverages, cold brew coffee products, proprietary energy drinks, tea, lemonade, smoothies and other beverages. The company has two reportable operating segments company-operated shops and franchising and other.

Executives

Travis Boersma	director, 10 percent owner, officer: Executive Chairman of Board	C/O DUTCH BROS INC., PO BOX 1929, GRANTS PASS OR 97528
Dm Trust Aggregator, Llc	10 percent owner	PO BOX 398, GRANTS PASS OR 97528
Dm Individual Aggregator, Llc	10 percent owner	PO BOX 398, GRANTS PASS OR 97528
Brian Maxwell	officer: Chief Operating Officer	C/O DUTCH BROS INC., PO BOX 1929, GRANTS PASS OR 97528
Tsg7 A Management Llc	10 percent owner	C/O TSG CONSUMER PARTNERS, 1100 LARKSPUR LANDING CIRCLE, SUITE 360, LARKSPUR CA 94939
Charles Jemley	officer: Chief Financial Officer	C/O FOUR CORNERS PROPERTY TRUST, INC., 591 REDWOOD HIGHWAY, SUITE 1150, MILL VALLEY CA 94941
C. David Cone	director	4900 N. SCOTTSDALE ROAD, SUITE 2000, SCOTTSDALE AZ 85251
Sullivan Sean B.a.	director	1201 DOWDELL LANE, SAINT HELENA CA 94574
Victoria J Tullett	officer: Chief Legal Officer	C/O DUTCH BROS INC., 110 SW 4TH STREET, GRANTS PASS OR 97526
Joth Ricci	officer: CEO and President	C/O DUTCH BROS INC., PO BOX 1929, GRANTS PASS OR 97528
Tana Davila	officer: Chief Marketing Officer	110 SW 4TH STREET, GRANTS PASS OR 97526
Christine Barone	officer: President	C/O YELP INC., 350 MISSION STREET, 10TH FLOOR, SAN FRANCISCO CA 94105
John Patrick Graham	officer: Chief Marketing Officer	C/O ALIGN TECHNOLOGY INC., 2820 ORCHARD PARKWAY, SAN JOSE CA 94131
Ann M Miller	director	ONE BOWERMAN DRIVE, BEAVERTON OR 97005
Stephen Gillett	director	2401 UTAH AVE S, SEATTLE WA 98134