CAVA Group, Inc. (CAVA)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,169,670 | 983,757 | 654,435 | 362,832 | 1,739,900 |
| Total stockholders’ equity | US$ in thousands | 695,566 | 570,802 | 213,805 | 269,287 | 870,900 |
| Financial leverage ratio | 1.68 | 1.72 | 3.06 | 1.35 | 2.00 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,169,670K ÷ $695,566K
= 1.68
The financial leverage ratio of CAVA Group, Inc. exhibits notable fluctuations over the analyzed period from December 31, 2020, to December 31, 2024. At the close of 2020, the ratio stood at 2.00, indicating a moderate reliance on debt relative to equity. A significant decrease occurred in 2021, where the ratio declined to 1.35, suggesting a reduction in financial leverage and a potential shift toward a more conservatively financed structure.
However, this trend reversed sharply by the end of 2022, with the ratio rising to 3.06, signifying an increased dependence on borrowed funds and greater financial leverage. The subsequent years show a slight decline, with the ratio at 1.72 at the end of 2023, and a modest further decrease to 1.68 by the end of 2024.
Overall, the company's financial leverage ratio demonstrates considerable variability, reflecting changes in capital structure strategy and possibly operational or market conditions influencing the company’s debt levels. The fluctuations suggest periods of increased financial risk in 2022, contrasted by more conservative leveraging in the and subsequent years, yet the ratio remains above the initial 2020 level, indicating sustained use of debt financing relative to equity.
Peer comparison
Dec 31, 2024