BJs Restaurants Inc (BJRI)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,058,450 | 1,045,920 | 1,035,170 | 1,059,420 | 1,072,080 |
| Total stockholders’ equity | US$ in thousands | 365,761 | 345,515 | 333,771 | 293,788 | 290,287 |
| Financial leverage ratio | 2.89 | 3.03 | 3.10 | 3.61 | 3.69 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,058,450K ÷ $365,761K
= 2.89
The financial leverage ratio of BJs Restaurants Inc has decreased over the past five years, indicating an improvement in the company's financial leverage position. This ratio measures the extent to which the company relies on debt to finance its operations and growth. A lower financial leverage ratio suggests that the company has reduced its dependence on debt financing and has improved its overall financial stability.
In 2023, the financial leverage ratio stands at 2.89, down from 3.69 in 2019. This downward trend indicates that BJs Restaurants Inc has been able to decrease its debt levels relative to its equity over the years, resulting in a stronger financial position. It is essential for companies to maintain an optimal balance between debt and equity to ensure sustainable growth and mitigate financial risks. By successfully reducing its financial leverage ratio, BJs Restaurants Inc has shown a positive trend in managing its capital structure efficiently.
Peer comparison
Dec 31, 2023