The Chefs Warehouse Inc (CHEF)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 454,672 | 434,782 | 422,975 | 405,952 | 401,509 | 384,949 | 373,687 | 354,425 | 350,211 | 339,066 | 333,049 | 328,016 | 344,590 | 378,008 | 387,317 | 319,617 | 335,933 | 322,601 | 317,395 | 308,423 |
| Debt-to-equity ratio | 1.46 | 1.59 | 1.68 | 1.61 | 1.63 | 1.28 | 1.05 | 1.11 | 1.13 | 1.16 | 1.19 | 1.21 | 1.16 | 1.05 | 1.03 | 1.55 | 1.15 | 0.87 | 0.89 | 0.91 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $664,802K ÷ $454,672K
= 1.46
The debt-to-equity ratio of The Chefs Warehouse Inc has shown some variation over the past five years, ranging from a low of 0.87 to a high of 1.68. The trend indicates an overall increase in leverage, with the ratio peaking in Jun 2023 at 1.68 before declining slightly to 1.46 by Dec 2023.
A higher debt-to-equity ratio suggests that the company relies more on debt financing compared to equity, which may indicate increased financial risk and higher leverage. Conversely, a lower ratio indicates a stronger equity position relative to debt.
It is important for investors and stakeholders to closely monitor changes in the debt-to-equity ratio over time to assess the company's capital structure, financial health, and risk profile. Additionally, management should strive to maintain a balance between debt and equity to ensure sustainable growth and financial stability.
Peer comparison
Dec 31, 2023