BJs Restaurants Inc (BJRI)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	1,058,450	1,037,140	1,041,260	1,044,170	1,045,920	1,017,550	1,031,120	1,020,060	1,035,170	1,041,160	1,069,100	1,085,730	1,059,420	1,066,750	1,102,730	1,113,030	1,072,080	1,058,200	1,055,520	1,058,250
Total stockholders’ equity	US$ in thousands	365,761	360,970	366,046	351,234	345,515	339,014	340,344	337,662	333,771	335,462	335,134	325,283	293,788	308,911	312,594	271,904	290,287	286,565	324,236	329,268
Financial leverage ratio		2.89	2.87	2.84	2.97	3.03	3.00	3.03	3.02	3.10	3.10	3.19	3.34	3.61	3.45	3.53	4.09	3.69	3.69	3.26	3.21

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 shown some fluctuations over the past few quarters, ranging from 2.84 to 4.09. The trend indicates that the company's level of financial leverage has been increasing over time, reaching its peak in the first quarter of 2020. This suggests that the company has been relying more on debt to finance its operations and investments.

A higher financial leverage ratio implies a higher level of financial risk as the company has a greater proportion of debt in its capital structure compared to equity. This can potentially magnify the impact of changes in earnings on the company's overall profitability and financial health.

Management and investors need to closely monitor the company's financial leverage ratio to ensure that it remains at a sustainable level and does not pose a significant risk to the company's long-term financial stability and growth prospects.