CAVA Group, Inc. (CAVA)
Financial leverage ratio
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,228,360 | 1,169,670 | 1,079,540 | 1,038,540 | 1,005,090 | 1,060,830 | 984,974 | 970,375 | 674,506 | 654,435 | 654,435 |
| Total stockholders’ equity | US$ in thousands | 726,174 | 695,566 | 616,437 | 595,437 | 580,810 | 570,802 | 565,723 | 555,809 | 211,267 | 213,805 | 213,805 |
| Financial leverage ratio | 1.69 | 1.68 | 1.75 | 1.74 | 1.73 | 1.86 | 1.74 | 1.75 | 3.19 | 3.06 | 3.06 |
March 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,228,360K ÷ $726,174K
= 1.69
The financial leverage ratio of CAVA Group, Inc. exhibits notable variation over the analyzed period. At the end of September 2022 and December 2022, the ratio stood at 3.06, indicating a relatively high level of leverage during that period. Subsequently, the ratio increased to 3.19 by March 2023, suggesting a slight uptick in financial leverage, possibly due to increased borrowed funds or changes in capital structure.
However, a significant decline is observed by June 30, 2023, with the ratio decreasing markedly to 1.75. This reduction indicates a substantial decrease in leverage, potentially reflecting deleveraging activities, repayment of debt, or a shift toward increased equity financing. The ratio remains relatively stable through September 2023 at 1.74, indicating consistent leverage levels in the short term.
The ratio experiences a moderate increase through the following months, reaching 1.86 by December 2023, before decreasing again to 1.73 by March 2024 and maintaining a similar level (1.74) through June 2024 and September 2024. These fluctuations suggest a degree of operational or financial restructuring, but overall the leverage ratio remains within a relatively narrow band, indicating moderate leverage levels.
By the end of December 2024, the ratio slightly recedes to 1.68, and then increases marginally to 1.69 by March 2025. The overall trend from the peak in March 2023 to later periods reflects a significant reduction in financial leverage, stabilizing around the low to mid-1.70 range. This progression indicates an effort to reduce reliance on borrowed capital, leading to a more balanced or conservative financial structure by the most recent periods.
In summary, the company's financial leverage ratio has undergone considerable fluctuation, peaking early in the observed timeline, then sharply declining and remaining relatively stable at lower levels. This pattern suggests strategic adjustments aimed at reducing debt relative to equity, which may improve financial stability and reduce risk exposure for the company.
Peer comparison
Mar 31, 2025