The Chefs Warehouse Inc (CHEF)
Debt-to-assets ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 23, 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 664,802 | 689,207 | 709,073 | 654,417 | 653,504 | 493,148 | 392,980 | 393,565 | 394,160 | 394,979 | 395,543 | 396,489 | 398,084 | 396,636 | 397,818 | 495,860 | 386,106 | 282,041 | 281,628 | 281,675 |
| Total assets | US$ in thousands | 1,705,310 | 1,658,040 | 1,650,990 | 1,552,130 | 1,509,300 | 1,252,760 | 1,136,880 | 1,091,570 | 1,073,800 | 1,032,010 | 1,010,600 | 962,582 | 974,325 | 1,031,780 | 1,035,400 | 1,106,910 | 1,013,680 | 890,899 | 877,751 | 847,112 |
| Debt-to-assets ratio | 0.39 | 0.42 | 0.43 | 0.42 | 0.43 | 0.39 | 0.35 | 0.36 | 0.37 | 0.38 | 0.39 | 0.41 | 0.41 | 0.38 | 0.38 | 0.45 | 0.38 | 0.32 | 0.32 | 0.33 |
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 shown some fluctuations over the past few periods. It has ranged between 0.32 to 0.45, with a general trend of hovering around the mid-0.30s to mid-0.40s. This indicates that the company's level of debt in relation to its total assets has been relatively stable, although there have been some variations.
A debt-to-assets ratio of less than 1 (or 100%) indicates that the company has more assets than debt, which can be considered a positive sign for creditors and investors. In this case, the company's ratios of 0.32 to 0.45 suggest that The Chefs Warehouse Inc relies more on equity funding than debt financing to support its operations and growth.
It is important to note that a lower debt-to-assets ratio may indicate lower financial risk and a more conservative financial structure. However, it could also suggest that the company is not leveraging debt effectively to maximize returns on equity. On the other hand, a higher ratio could indicate higher financial risk but may also signal that the company is utilizing debt to fuel growth and potentially generate higher returns for shareholders.
Overall, a debt-to-assets ratio analysis should be considered within the context of the company’s overall financial strategy, industry standards, and future growth prospects to provide a more comprehensive assessment of its financial health.
Peer comparison
Dec 31, 2023