BJs Wholesale Club Holdings Inc (BJ)

Debt-to-equity 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-equity ratio		0.27	0.43	1.16	2.65	—

February 3, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $398,432K ÷ $1,458,850K
= 0.27

The debt-to-equity ratio of BJs Wholesale Club Holdings Inc has shown a decreasing trend over the past five years. As of February 3, 2024, the ratio stands at 0.27, indicating that the company has a lower level of debt relative to its equity. This signifies a strong financial position with a greater reliance on equity financing compared to debt funding.

Comparing this to the previous year-ends, the ratio has significantly improved from 0.43 as of January 28, 2023, and has shown a substantial decline from 1.16 as of January 29, 2022, and 2.65 as of January 30, 2021. The decreasing trend in the debt-to-equity ratio suggests that the company has been reducing its debt levels relative to its equity, which could lead to lower financial risk and potentially higher financial stability.

However, it's worth noting that the absence of data for February 1, 2020, limits a complete trend analysis. Overall, the declining debt-to-equity ratio implies an improving financial health and a more conservative capital structure for BJs Wholesale Club Holdings Inc in recent years.