Basis: Latest reported fiscal quarter. Source: stored company filings and market data; unavailable inputs remain N/A.
Is the interest coverage ratio high or low?
The interest coverage ratio of 7.21x is 11% below its 5-year average of 8.09x, around the middle of its 5-year range (5.89x–10.17x).
As of the fiscal period ended Tuesday, March 31, 2026. 6.38% below its 12-month average of 7.70x.
Reported quarterly interest coverage; no daily interpolation.
INTEREST COVERAGE RATIO
7.21x
INTEREST COVERAGE RATIO AVG TTM
7.70x
INTEREST COVERAGE RATIO AVG 3Y
7.73x
INTEREST COVERAGE RATIO AVG 5Y
8.09x
INTEREST COVERAGE RATIO AVG 10Y
8.27x
INTEREST COVERAGE RATIO AVG 15Y
10.53x
INTEREST COVERAGE RATIO AVG 20Y
N/A
CURRENT VS TTM AVG
-6.38%
CURRENT VS 3Y AVG
-6.75%
CURRENT VS 5Y AVG
-10.89%
CURRENT VS 10Y AVG
-12.84%
CURRENT VS 15Y AVG
-31.53%
CURRENT VS 20Y AVG
N/A
SECTOR MEDIAN · CONSUMER CYCLICAL
6.33x
median of 76 covered companies
CURRENT VS SECTOR MEDIAN
+13.90%
vs the sector median at left
McDonald's Corporation
Market Cap
$192.29B
Interest Coverage Ratio
7.21x
TTM Avg
7.70x
3Y Avg
7.73x
5Y Avg
8.09x
Market Cap
$173.81B
Interest Coverage Ratio
97.00x
TTM Avg
89.96x
3Y Avg
77.79x
5Y Avg
59.02x
Market Cap
$149.47B
Interest Coverage Ratio
5.74x
TTM Avg
5.79x
3Y Avg
7.78x
5Y Avg
7.72x
Market Cap
$126.06B
Interest Coverage Ratio
N/A
TTM Avg
961.51x
3Y Avg
642.87x
5Y Avg
642.87x
Market Cap
$119.98B
Interest Coverage Ratio
6.60x
TTM Avg
8.11x
3Y Avg
9.11x
5Y Avg
8.40x
Market Cap
$116.57B
Interest Coverage Ratio
6.65x
TTM Avg
6.77x
3Y Avg
8.12x
5Y Avg
9.87x
Market Cap
$108.29B
Interest Coverage Ratio
8.57x
TTM Avg
16.34x
3Y Avg
17.47x
5Y Avg
12.43x
Market Cap
$98.31B
Interest Coverage Ratio
5.12x
TTM Avg
5.27x
3Y Avg
6.49x
5Y Avg
5.06x
Market Cap
$95.21B
Interest Coverage Ratio
21.63x
TTM Avg
19.41x
3Y Avg
13.82x
5Y Avg
9.74x
| NAME | MARKET CAP | INTEREST COVERAGE RATIO | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| McDonald's Corporation (MCD) | $192.29B | 7.21x | 7.70x | 7.73x | 8.09x |
| The TJX Companies, Inc. (TJX)vs › | $173.81B | 97.00x | 89.96x | 77.79x | 59.02x |
| Booking Holdings Inc. (BKNG)vs › | $149.47B | 5.74x | 5.79x | 7.78x | 7.72x |
| PDD Holdings Inc. (PDD)vs › | $126.06B | N/A | 961.51x | 642.87x | 642.87x |
| Starbucks Corporation (SBUX)vs › | $119.98B | 6.60x | 8.11x | 9.11x | 8.40x |
| Lowe's Companies, Inc. (LOW)vs › | $116.57B | 6.65x | 6.77x | 8.12x | 9.87x |
| BYD Company Limited (BYDDY)vs › | $108.29B | 8.57x | 16.34x | 17.47x | 12.43x |
| Marriott International, Inc. (MAR)vs › | $98.31B | 5.12x | 5.27x | 6.49x | 5.06x |
| MercadoLibre, Inc. (MELI)vs › | $95.21B | 21.63x | 19.41x | 13.82x | 9.74x |
| Alibaba Group Holding Limited (BABA)vs › | $293.02B | 6.09x | 10.38x | 8.25x | 6.79x |
Interest Coverage
7.2x
Debt/Equity
-30.61
Current Ratio
0.95
Formula: Interest Coverage = EBIT / Interest Expense
Reference ranges:
Note: Interest coverage should be compared with historical interest expense, operating income, and industry capital structure.
Interest Coverage = EBIT / Interest Expense
The interest coverage ratio measures operating earnings relative to interest expense.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
| DATE | INTEREST COVERAGE RATIO |
|---|---|
| 2026-03-31 | 7.21x |
| 2025-12-31 | 7.70x |
| 2025-09-30 | 8.27x |
| 2025-06-30 | 8.29x |
| 2025-03-31 | 7.04x |
| 2024-12-31 | 7.55x |
| 2024-09-30 | 8.37x |
| 2024-06-30 | 7.83x |
| 2024-03-31 | 7.35x |
| 2023-12-31 | 7.78x |
| 2023-09-30 | 9.41x |
| 2023-06-30 | 9.41x |
| 2023-03-31 | 7.67x |
| 2022-12-31 | 8.00x |
| 2022-09-30 | 9.03x |
| 2022-06-30 | 5.89x |
| 2022-03-31 | 8.05x |
| 2021-12-31 | 8.11x |
| 2021-09-30 | 10.17x |
| 2021-06-30 | 9.08x |
| 2021-03-31 | 7.60x |
| 2020-12-31 | 7.20x |
| 2020-09-30 | 8.15x |
| 2020-06-30 | 3.01x |
| 2020-03-31 | 6.05x |
| 2019-12-31 | 8.10x |
| 2019-09-30 | 8.51x |
| 2019-06-30 | 7.94x |
| 2019-03-31 | 7.64x |
| 2018-12-31 | 7.87x |
| 2018-09-30 | 9.62x |
| 2018-06-30 | 9.42x |
| 2018-03-31 | 9.05x |
| 2017-12-31 | 9.12x |
| 2017-09-30 | 13.01x |
| 2017-06-30 | 9.94x |
| 2017-03-31 | 9.23x |
| 2016-12-31 | 8.90x |
| 2016-09-30 | 9.62x |
| 2016-06-30 | 8.30x |
| 2016-03-31 | 8.16x |
| 2015-12-31 | 10.39x |
| 2015-09-30 | 12.62x |
| 2015-06-30 | 12.39x |
| 2015-03-31 | 9.41x |
| 2014-12-31 | 11.85x |
| 2014-09-30 | 13.88x |
| 2014-06-30 | 15.87x |
| 2014-03-31 | 14.29x |
| 2013-12-31 | 16.48x |
| 2013-09-30 | 18.52x |
| 2013-06-30 | 16.93x |
| 2013-03-31 | 15.22x |
| 2012-12-31 | 16.96x |
| 2012-09-30 | 17.85x |
| 2012-06-30 | 16.58x |
| 2012-03-31 | 15.24x |
| 2011-12-31 | 16.71x |
| 2011-09-30 | 19.31x |
| 2011-06-30 | 17.97x |
| 2011-03-31 | 15.20x |
| 2010-12-31 | 15.87x |
| 2010-09-30 | 18.26x |
| 2010-06-30 | 17.07x |
| 2010-03-31 | 15.08x |
| 2009-12-31 | 15.85x |
| 2009-09-30 | 16.41x |
| 2009-06-30 | 14.09x |
| 2009-03-31 | 11.58x |
| 2008-09-30 | 13.86x |
| 2008-06-30 | 11.31x |
| 2008-03-31 | 11.38x |
