BJs Wholesale Club Holdings Inc (BJ)

Debt-to-capital ratio

Feb 3, 2024 Oct 28, 2023 Jul 29, 2023 Apr 29, 2023 Jan 28, 2023 Oct 29, 2022 Jul 30, 2022 Apr 30, 2022 Jan 29, 2022 Oct 30, 2021 Jul 31, 2021 May 1, 2021 Jan 30, 2021 Oct 31, 2020 Aug 1, 2020 May 2, 2020 Feb 1, 2020 Nov 2, 2019 Aug 3, 2019 May 4, 2019
Long-term debt US$ in thousands 398,432 398,355 448,135 448,004 447,880 600,123 699,406 748,987 748,568 748,149 747,730 747,311 846,175 845,696 1,202,210 1,334,800 1,337,310 1,339,700 1,540,600 1,543,540
Total stockholders’ equity US$ in thousands 1,458,850 1,353,700 1,231,290 1,131,730 1,046,840 942,875 853,591 721,342 648,108 567,736 488,352 413,524 319,327 217,378 119,101 32,497 -54,344 -104,486 -164,586 -148,309
Debt-to-capital ratio 0.21 0.23 0.27 0.28 0.30 0.39 0.45 0.51 0.54 0.57 0.60 0.64 0.73 0.80 0.91 0.98 1.04 1.08 1.12 1.11

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 on an increasing trend over the past several quarters, indicating a greater reliance on debt financing relative to equity. The ratio stood at 0.21 as of February 3, 2024, but has steadily risen to 1.11 as of May 4, 2019. This upward trajectory suggests a growing proportion of the company's capital structure being funded by debt rather than equity.

A higher debt-to-capital ratio can signify increased financial leverage, which may potentially amplify returns for shareholders during favorable economic conditions. However, it also heightens the company's risk exposure, particularly in times of economic downturns or rising interest rates, as the company needs to meet debt obligations regardless of its operational performance.

Investors and creditors often assess the debt-to-capital ratio to evaluate a company's financial health and risk profile. BJs Wholesale Club Holdings Inc's escalating trend in this ratio may indicate a need for careful monitoring of its debt levels and the company's ability to manage its debt burden effectively in the long term.