Basis: Trailing twelve months (TTM). 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 7.83x is in line with its 5-year average of 8.12x, around the middle of its 5-year range (5.89x–10.17x).
0.98% below its 12-month average of 7.91x.
Reported quarterly interest coverage; no daily interpolation. Q2 FY2026 (2026-06-30): 8.07x.
INTEREST COVERAGE RATIO
7.83x
INTEREST COVERAGE RATIO AVG TTM
7.91x
INTEREST COVERAGE RATIO AVG 3Y
7.77x
INTEREST COVERAGE RATIO AVG 5Y
8.12x
INTEREST COVERAGE RATIO AVG 10Y
8.27x
INTEREST COVERAGE RATIO AVG 15Y
10.41x
INTEREST COVERAGE RATIO AVG 20Y
11.11x
CURRENT VS TTM AVG
-0.98%
CURRENT VS 3Y AVG
+0.79%
CURRENT VS 5Y AVG
-3.52%
CURRENT VS 10Y AVG
-5.32%
CURRENT VS 15Y AVG
-24.80%
CURRENT VS 20Y AVG
-29.53%
SECTOR MEDIAN · CONSUMER CYCLICAL
6.67x
median of 85 covered companies
CURRENT VS SECTOR MEDIAN
+17.39%
vs the sector median at left
McDonald's Corporation
Market Cap
$179.60B
Interest Coverage Ratio
7.83x
TTM Avg
7.91x
3Y Avg
7.77x
5Y Avg
8.12x
Market Cap
$166.54B
Interest Coverage Ratio
116.68x
TTM Avg
110.46x
3Y Avg
106.55x
5Y Avg
100.97x
Market Cap
$137.69B
Interest Coverage Ratio
97.00x
TTM Avg
89.96x
3Y Avg
77.79x
5Y Avg
59.02x
Market Cap
$132.75B
Interest Coverage Ratio
5.74x
TTM Avg
5.79x
3Y Avg
7.78x
5Y Avg
7.72x
Market Cap
$231.39B
Interest Coverage Ratio
15.36x
TTM Avg
15.31x
3Y Avg
27.30x
5Y Avg
33.18x
Market Cap
$231.47B
Interest Coverage Ratio
62.47x
TTM Avg
59.75x
3Y Avg
64.93x
5Y Avg
66.06x
Market Cap
$111.14B
Interest Coverage Ratio
N/A
TTM Avg
961.51x
3Y Avg
642.87x
5Y Avg
642.87x
Market Cap
$110.10B
Interest Coverage Ratio
6.60x
TTM Avg
8.11x
3Y Avg
9.11x
5Y Avg
8.40x
Market Cap
$109.09B
Interest Coverage Ratio
6.65x
TTM Avg
6.88x
3Y Avg
7.64x
5Y Avg
9.28x
| NAME | MARKET CAP | INTEREST COVERAGE RATIO | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| McDonald's Corporation (MCD) | $179.60B | 7.83x | 7.91x | 7.77x | 8.12x |
| Hermes International Societe en commandite par actions Unsponsored ADR (HESAY)vs › | $166.54B | 116.68x | 110.46x | 106.55x | 100.97x |
| The TJX Companies, Inc. (TJX)vs › | $137.69B | 97.00x | 89.96x | 77.79x | 59.02x |
| Booking Holdings Inc. (BKNG)vs › | $132.75B | 5.74x | 5.79x | 7.78x | 7.72x |
| LVMH Moët Hennessy - Louis Vuitton, Société Européenne (LVMUY)vs › | $231.39B | 15.36x | 15.31x | 27.30x | 33.18x |
| Toyota Motor Corporation (TM)vs › | $231.47B | 62.47x | 59.75x | 64.93x | 66.06x |
| PDD Holdings Inc. (PDD)vs › | $111.14B | N/A | 961.51x | 642.87x | 642.87x |
| Starbucks Corporation (SBUX)vs › | $110.10B | 6.60x | 8.11x | 9.11x | 8.40x |
| Lowe's Companies, Inc. (LOW)vs › | $109.09B | 6.65x | 6.88x | 7.64x | 9.28x |
| Airbnb, Inc. (ABNB)vs › | $99.90B | N/A | 46.69x | 31.45x | 23.77x |
Interest Coverage
7.8x
Debt/Equity
N/A
Current Ratio
1.08
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 |
|---|---|
| 2026-06-30 | 8.07x |
| 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 |
