The Chefs Warehouse Inc (CHEF)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 688,744 | 664,802 | 653,504 | 394,160 | 398,084 |
| Total assets | US$ in thousands | 1,858,690 | 1,705,310 | 1,509,300 | 1,073,800 | 974,325 |
| Debt-to-assets ratio | 0.37 | 0.39 | 0.43 | 0.37 | 0.41 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $688,744K ÷ $1,858,690K
= 0.37
The debt-to-assets ratio of The Chefs Warehouse Inc has exhibited fluctuations over the past five years. As of December 31, 2020, the company had a debt-to-assets ratio of 0.41, indicating that 41% of its assets were financed by debt. Subsequently, the ratio decreased to 0.37 by the end of December 31, 2021, before rising to 0.43 on December 31, 2022. However, in the following years, the ratio decreased to 0.39 by December 31, 2023, and remained stable at 0.37 by December 31, 2024.
Overall, the trend suggests that The Chefs Warehouse Inc has maintained a relatively moderate level of debt compared to its total assets during the period under review. This indicates that the company has a significant portion of its assets financed through equity rather than debt, which could potentially signal a lower risk of financial distress associated with high debt levels. Nonetheless, ongoing monitoring of the debt-to-assets ratio is crucial to assess the company's financial leverage and risk management strategies.
Peer comparison
Dec 31, 2024