The Chefs Warehouse Inc (CHEF)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| Financial leverage ratio | 3.75 | 3.81 | 3.90 | 3.82 | 3.76 | 3.25 | 3.04 | 3.08 | 3.07 | 3.04 | 3.03 | 2.93 | 2.83 | 2.73 | 2.67 | 3.46 | 3.02 | 2.76 | 2.77 | 2.75 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,705,310K ÷ $454,672K
= 3.75
The financial leverage ratio of The Chefs Warehouse Inc has shown some fluctuation over the past few quarters, ranging from 2.67 to 3.90. A higher financial leverage ratio indicates a higher degree of financial leverage, which means the company relies more on debt financing compared to equity. Generally, a higher financial leverage ratio can amplify returns on equity when the company is performing well, but it also increases the risk of financial distress in times of economic downturns.
In the most recent period, the financial leverage ratio was 3.75, suggesting that the company's debt levels were 3.75 times higher than its equity. This indicates a moderate level of financial leverage for the company. It is important for investors and stakeholders to monitor the financial leverage ratio of the company to assess its risk exposure and financial health. Additionally, changes in the ratio over time can provide insights into the company's capital structure decisions and risk management strategies.
Peer comparison
Dec 31, 2023