The Chefs Warehouse Inc (CHEF)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 664,802 | 653,504 | 394,160 | 398,084 | 386,106 |
| Total assets | US$ in thousands | 1,705,310 | 1,509,300 | 1,073,800 | 974,325 | 1,013,680 |
| Debt-to-assets ratio | 0.39 | 0.43 | 0.37 | 0.41 | 0.38 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $664,802K ÷ $1,705,310K
= 0.39
The debt-to-assets ratio of The Chefs Warehouse Inc has fluctuated over the past five years, indicating the company's leverage and financial risk. In 2023, the ratio decreased to 0.39 from 0.43 in 2022, which suggests a lower proportion of the company's assets are financed by debt compared to the previous year. This could imply improved financial stability or a decrease in the company's debt levels relative to its total assets.
Looking at the trend over the five-year period, the ratio ranged between 0.37 and 0.43, with the highest ratio observed in 2022 and the lowest in 2021. This fluctuation indicates some variability in the company's debt management and asset allocation strategies during these years.
Overall, a debt-to-assets ratio of around 0.39 in 2023 suggests that approximately 39% of The Chefs Warehouse Inc's total assets are financed by debt. This ratio provides insight into the company's capital structure and helps assess its ability to meet its debt obligations. Lower ratios generally indicate less financial risk, while higher ratios may signal a higher level of financial leverage.
Peer comparison
Dec 31, 2023