BJs Restaurants Inc (BJRI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Based on the provided data, BJs Restaurants Inc has consistently maintained a low debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio of 0.00 across all reporting periods. This indicates that the company is not heavily reliant on debt to finance its operations and that its assets are predominantly funded by equity.
However, there has been variability in the financial leverage ratio, which measures how much a company's assets are funded by debt compared to equity. The ratio has ranged from 2.84 to 4.09 over the past few quarters, with a general increasing trend. This suggests that the company's financial structure is becoming more leveraged, indicating a higher proportion of debt in its capital structure compared to equity.
Overall, while BJs Restaurants Inc does not have significant debt obligations in relation to its assets, capital, or equity, the increasing trend in the financial leverage ratio should be monitored as it could reflect an evolving debt profile that may impact the company's solvency and financial stability over time.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.89 | 6.27 | 5.08 | 3.75 | -24.80 | -72.36 | -57.91 | -37.35 | -32.30 | -67.16 | -122.03 | -469.95 | -1,016.84 | -35.89 | -13.22 | 7.72 | 10.65 | 10.87 | 12.27 | 12.16 |
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
Based on the data provided for BJs Restaurants Inc, we observe significant fluctuations in the interest coverage ratio over the past few years. The interest coverage ratio has been generally positive and stable from Dec 31, 2019, to Jun 30, 2023, ranging from 3.75 to 6.27. This indicates that during this period, the company's operating income was sufficient to cover its interest payments.
However, there are some concerning figures in the data, particularly the negative interest coverage ratios in Dec 31, 2022, Sep 30, 2022, Jun 30, 2022, and Mar 31, 2022. A negative interest coverage ratio suggests that the company's operating income was insufficient to cover its interest expenses, which may raise solvency concerns and indicate financial distress.
The steep decline in the interest coverage ratio in 2022, reaching as low as -1,016.84, raises red flags about the company's ability to service its debt. It is essential for investors and stakeholders to closely monitor the company's financial health and its ability to generate sustainable cash flows to meet its interest obligations in the future.