Driven Brands Holdings (Driven Brands Holdings) Interest Coverage : 1.82 (As of Mar. 2024)

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What is Driven Brands Holdings 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. Driven Brands Holdings's Operating Income for the three months ended in Mar. 2024 was $80 Mil. Driven Brands Holdings's Interest Expense for the three months ended in Mar. 2024 was $-44 Mil. Driven Brands Holdings's interest coverage for the quarter that ended in Mar. 2024 was 1.82. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Driven Brands Holdings Inc interest coverage is 1.83, which is low.

The historical rank and industry rank for Driven Brands Holdings's Interest Coverage or its related term are showing as below:

DRVN' s Interest Coverage Range Over the Past 10 Years
Min: 1.24 Med: 1.67 Max: 3.2
Current: 1.83

DRVN's Interest Coverage is ranked worse than
84.72% of 1034 companies
in the Vehicles & Parts industry
Industry Median: 7.785 vs DRVN: 1.83

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

Driven Brands Holdings Interest Coverage Historical Data

The historical data trend for Driven Brands Holdings'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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Driven Brands Holdings Interest Coverage Chart

Driven Brands Holdings Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.44

1.24

3.20

3.03

1.89

Driven Brands Holdings Quarterly Data
	Dec18	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															2.08	2.63	1.38	1.52	1.82

Competitive Comparison of Driven Brands Holdings's Interest Coverage

For the Auto & Truck Dealerships subindustry, Driven Brands Holdings'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.

Driven Brands Holdings's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Driven Brands Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Driven Brands Holdings's Interest Coverage falls into.

Driven Brands Holdings 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.

Driven Brands Holdings'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, Driven Brands Holdings's Interest Expense was $-164 Mil. Its Operating Income was $311 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,243 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	310.514	/	-164.196
	=	1.89

Driven Brands Holdings's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Driven Brands Holdings's Interest Expense was $-44 Mil. Its Operating Income was $80 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,225 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	79.638	/	-43.772
	=	1.82

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

Driven Brands Holdings (NAS:DRVN) 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 .

Driven Brands Holdings Interest Coverage Related Terms

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

Driven Brands Holdings (Driven Brands Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Driven Brands Holdings Inc (NAS:DRVN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

440 South Church Street, Suite 700, Charlotte, NC, USA, 28202

Website

https://www.drivenbrands.com

Driven Brands Holdings Inc is an automotive services company. The company provides an extensive range of core consumer and commercial automotive needs, including paint, collision, glass, vehicle repair, oil change, maintenance and car wash.

Executives

Jonathan G. Fitzpatrick	director, officer: President & CEO	440 S. CHURCH STREET, SUITE 700, CHARLOTTE NC 28202
Gary W Ferrera	officer: EVP, Chief Financial Officer	3250 BRIARPARK, SUITE 400, HOUSTON TX 77042
Muhammad Khalid	officer: EVP, Seg. Pres. - Maintenance	440 S. CHURCH STREET, SUITE 700, CHARLOTTE NC 28202
Rc Iv Cayman Icw Holdings Llc	10 percent owner, other: See Remarks.	C/O ROARK CAPITAL MANAGEMENT, LLC, 1180 PEACHTREE STREET, SUITE 2500, ATLANTA GA 30309
Neal K Aronson	director, 10 percent owner, other: See Remarks	1180 PEACHTREE STREET NE., SUITE 2500, ATLANTA GA 30309
Driven Equity Llc	10 percent owner, other: See Remarks.	C/O ROARK CAPITAL MANAGEMENT, LLC, 1180 PEACHTREE STREET, SUITE 2500, ATLANTA GA 30309
Michael G. Macaluso	officer: EVP & Grp Pres-Pt., Coll & Gl.	440 S. CHURCH STREET, SUITE 700, CHARLOTTE NC 28202
Jose D. Tomas	director	5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Driven Equity Sub Llc	10 percent owner, other: See Remarks.	C/O ROARK CAPITAL MANAGEMENT, LLC, 1180 PEACHTREE STREET, SUITE 2500, ATLANTA GA 30309
Rc Iv Cayman Icw Holdings Sub Llc	10 percent owner, other: See Remarks.	C/O ROARK CAPITAL MANAGEMENT, LLC, 1180 PEACHTREE STREET, SUITE 2500, ATLANTA GA 30309
Roark Capital Partners Iii Aiv Lp	10 percent owner, other: See Remarks.	C/O ROARK CAPITAL MANAGEMENT, LLC, 1180 PEACHTREE STREET, SUITE 2500, ATLANTA GA 30309
Daniel R. Rivera	officer: EVP & Group President, Maint.	440 S. CHURCH STREET, SUITE 700, CHARLOTTE NC 28202
John R. Teddy	officer: EVP & President, Car Wash N.A.	440 S. CHURCH STREET, SUITE 700, CHARLOTTE NC 28202
Karen B. Stroup	director	440 S. CHURCH STREET, SUITE 700, CHARLOTTE NC 28202
Michael Beland	officer: SVP & Chief Accounting Officer	440 S. CHURCH ST., SUITE 700, CHARLOTTE NC 28202