BJs Wholesale Club Holdings Inc (BJ)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,458,850	1,046,840	648,108	319,327	-54,344
Debt-to-capital ratio		0.21	0.30	0.54	0.73	1.04

February 3, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $398,432K ÷ ($398,432K + $1,458,850K)
= 0.21

The debt-to-capital ratio of BJs Wholesale Club Holdings Inc has been decreasing over the past five years, indicating a positive trend in the company's capital structure. The ratio declined from 1.04 in February 2020 to 0.21 in February 2024. This improvement suggests that the company has been reducing its reliance on debt financing relative to its total capital. A lower debt-to-capital ratio generally signifies a lower level of financial risk and greater financial stability. This trend may reflect more prudent financial management and could be viewed favorably by investors and creditors. Overall, the decreasing trend in BJs Wholesale Club Holdings Inc's debt-to-capital ratio suggests an improved financial position and better capital structure management over the years.