The Chefs Warehouse Inc (CHEF)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 454,672 | 401,509 | 350,211 | 344,590 | 335,933 |
| Debt-to-capital ratio | 0.59 | 0.62 | 0.53 | 0.54 | 0.53 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $664,802K ÷ ($664,802K + $454,672K)
= 0.59
The debt-to-capital ratio of The Chefs Warehouse Inc has fluctuated over the past five years, ranging from 0.53 to 0.62. This ratio indicates the proportion of the company's capital structure that is funded by debt. A higher debt-to-capital ratio suggests that the company relies more on debt financing, which can increase financial risk due to obligations to creditors. Conversely, a lower ratio indicates a more conservative approach to financing.
In this case, The Chefs Warehouse Inc's debt-to-capital ratio has shown some variability but has generally remained within a moderate range. The slight decrease from 2022 to 2023 may indicate a reduction in reliance on debt financing or an increase in capital relative to debt. It is important for investors and stakeholders to closely monitor this ratio to assess the company's financial health and risk profile, as changes in the ratio could impact the company's ability to meet its financial obligations and long-term sustainability.
Peer comparison
Dec 31, 2023