BJs Restaurants Inc (BJRI)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.89 | 3.03 | 3.10 | 3.61 | 3.69 |
Based on the solvency ratios provided for BJs Restaurants Inc, fluctuations can be observed in the financial leverage ratio over the past five years. The financial leverage ratio indicates the degree to which the company relies on debt financing. In this case, BJs Restaurants Inc's financial leverage ratio has decreased from 3.69 in 2019 to 2.89 in 2023.
A lower financial leverage ratio signifies a reduced reliance on debt to finance operations, which can be seen as a positive indicator of solvency. However, it is important to note that the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have consistently been reported as 0.00, indicating that there is either no debt in the capital structure or the company has minimal debt compared to its assets and capital.
Overall, the trend of decreasing financial leverage ratio suggests that BJs Restaurants Inc has been managing its debt effectively over the years, which may reflect positively on its solvency position and ability to meet its financial obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 63.41 | -24.80 | -32.30 | -1,016.84 | 10.65 |
BJs Restaurants Inc's interest coverage ratio has shown significant fluctuations over the past five years.
In 2023, the interest coverage ratio improved significantly to 63.41, indicating the company's ability to cover its interest expenses 63.41 times over with its earnings before interest and taxes (EBIT). This is a positive sign and suggests the company has a strong capacity to meet its interest obligations.
However, in the previous year (2022), the interest coverage ratio was at a concerning -24.80, indicating that the company's EBIT was insufficient to cover its interest expenses. This negative ratio suggests a high financial risk and indicates that the company may have had difficulty meeting its interest payments during that period.
Similarly, in 2021 and 2020, the interest coverage ratios were -32.30 and -1,016.84, respectively, further highlighting the financial challenges the company faced during those years.
On a more positive note, in 2019, the interest coverage ratio was 10.65, indicating that the company was in a better position to cover its interest expenses with its earnings.
Overall, BJs Restaurants Inc's interest coverage ratio has been volatile, with periods of strong and weak performance in meeting its interest obligations. Investors and creditors should closely monitor this ratio to assess the company's financial health and ability to service its debt.