BJs Wholesale Club Holdings Inc (BJ)

Debt-to-assets ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Long-term debt	US$ in thousands	398,432	447,880	748,568	846,175	1,337,310
Total assets	US$ in thousands	6,677,620	6,349,960	5,668,890	5,411,530	5,269,780
Debt-to-assets ratio		0.06	0.07	0.13	0.16	0.25

February 3, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $398,432K ÷ $6,677,620K
= 0.06

The debt-to-assets ratio of BJs Wholesale Club Holdings Inc has shown a consistent downward trend over the past five years, moving from 0.25 in February 2020 to 0.06 in February 2024. This indicates that the company has been reducing its reliance on debt to finance its assets over this period. A lower debt-to-assets ratio suggests that the company is less leveraged and has a stronger financial position. It signifies that a higher proportion of the company's assets are financed through equity rather than debt, which may reduce the risk of financial distress and potential default. This trend demonstrates improved financial health and stability for BJs Wholesale Club Holdings Inc, reflecting positively on its ability to manage its liabilities and capitalize on its assets effectively.