The Chefs Warehouse Inc (CHEF)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,858,690 | 1,705,310 | 1,509,300 | 1,073,800 | 974,325 |
| Total stockholders’ equity | US$ in thousands | 537,646 | 454,672 | 401,509 | 350,211 | 344,590 |
| Financial leverage ratio | 3.46 | 3.75 | 3.76 | 3.07 | 2.83 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,858,690K ÷ $537,646K
= 3.46
The financial leverage ratio of The Chefs Warehouse Inc has shown an increasing trend over the past five years, rising from 2.83 in 2020 to 3.46 in 2024. This indicates that the company has been using more debt to finance its operations and growth. The ratio exceeded 3 in 2021 and has remained above that level, reaching its peak at 3.76 in 2022. A high financial leverage ratio suggests that the company is highly leveraged and may face greater financial risk, especially in times of economic uncertainty or rising interest rates. Investors and creditors should closely monitor The Chefs Warehouse Inc's leverage levels to assess its ability to meet its financial obligations and sustain its growth.
Peer comparison
Dec 31, 2024