Domino's Pizza (Domino's Pizza) Interest Coverage

: 4.27 (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. Domino's Pizza's Operating Income for the three months ended in Dec. 2023 was $257 Mil. Domino's Pizza's Interest Expense for the three months ended in Dec. 2023 was $-60 Mil. Domino's Pizza's interest coverage for the quarter that ended in Dec. 2023 was 4.27. The higher the ratio, the stronger the company's financial strength is.

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

DPZ' s Interest Coverage Range Over the Past 10 Years
Min: 3.77 Med: 4.1 Max: 4.25
Current: 4.17

DPZ's Interest Coverage is ranked worse than
63.67% of 256 companies
in the Restaurants industry
Industry Median: 6.835 vs DPZ: 4.17

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

Domino's Pizza Interest Coverage Historical Data

The historical data trend for Domino's Pizza'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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Domino's Pizza Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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4.17

4.21

4.07

3.77

4.17

Domino's Pizza Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															3.73	3.82	4.35	4.23	4.27

Competitive Comparison

For the Restaurants subindustry, Domino's Pizza'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.

Domino's Pizza Interest Coverage Distribution

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

* The bar in red indicates where Domino's Pizza's Interest Coverage falls into.

Domino's Pizza 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.

Domino's Pizza'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, Domino's Pizza's Interest Expense was $-196 Mil. Its Operating Income was $820 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,114 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	819.668	/	-196.475
	=	4.17

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

Here, for the three months ended in Dec. 2023, Domino's Pizza's Interest Expense was $-60 Mil. Its Operating Income was $257 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,114 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	257.35	/	-60.2
	=	4.27

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

Domino's Pizza (NYSE:DPZ) 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 .

Domino's Pizza Interest Coverage Related Terms

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Domino's Pizza (Domino's Pizza) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Domino's Pizza Inc (NYSE:DPZ) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

DPZ:Mexico EZV:Germany EZV:Germany D2PZ34:Brazil DPZ:Austria

Address

30 Frank Lloyd Wright Drive, Ann Arbor, MI, USA, 48105

Website

https://www.dominos.com

Domino's is a restaurant operator and franchiser with nearly 20,000 global stores across more than 90 international markets at the end of 2022. The firm generates revenue through the sales of pizza, wings, salads, sandwiches, and desserts at company-owned stores, royalty and marketing contributions from franchise-operated stores, and its network of 26 domestic (and five Canadian) dough manufacturing and supply chain facilities, which centralize purchasing, preparation, and last-mile delivery for the firm's U.S. and Canadian restaurants. With roughly $17.7 billion in 2022 system sales, Domino's is the largest player in the global pizza market, ahead of Pizza Hut, Little Caesars, and Papa John's.

Executives

Sam Jackson	officer: EVP, Human Resources	30 FRANK LLOYD WRIGHT DRIVE, ANN ARBOR MI 48105
Andy Ballard	director	ONE MARITIME PLAZA, SUITE 1350, SAN FRANCISCO CA 94111
Lisa V Price	officer: EVP, Chief Human Resources Ofc	30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
Cynthia A Headen	officer: EVP, Supply Chain Services	30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
Andrew Balson	director, 10 percent owner
Patricia E Lopez	director	333 LUDLOW ST, STAMFORD CT 06902
Joseph Hugh Jordan	officer: EVP, International	30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
James A Goldman	director
Reddy Sandeep	officer: EVP, Chief Financial Officer	C/O GUESS?, INC., 1444 SOUTH ALAMEDA STREET, LOS ANGELES CA 90021
Russell J Weiner	officer: President, Domino's U.S.A.	30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
Jessica L Parrish	officer: VP, Treasurer, Corp Controller	30 FRANK LLOYD WRIGHT DRIVE, ANN ARBOR MI 48105
Allison Richard E Jr	officer: President, Domino's Int'l	30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
Kevin Scott Morris	officer: EVP, Gen'l Counsel, Secretary	30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105
Diana F Cantor	director	9201 FOREST HILL AVENUE, RICHMOND VA 23235
Timothy P. Mcintyre	officer: EVP, Comm, Investor Relations	30 FRANK LLOYD WRIGHT DR, ANN ARBOR MI 48105