The Chefs Warehouse Inc (CHEF)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.37 | 0.38 | 0.39 | 0.40 | 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 |
| Debt-to-capital ratio | 0.56 | 0.58 | 0.59 | 0.60 | 0.59 | 0.61 | 0.63 | 0.62 | 0.62 | 0.56 | 0.51 | 0.53 | 0.53 | 0.54 | 0.54 | 0.55 | 0.54 | 0.51 | 0.51 | 0.61 |
| Debt-to-equity ratio | 1.28 | 1.39 | 1.43 | 1.49 | 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 |
| Financial leverage ratio | 3.46 | 3.69 | 3.71 | 3.73 | 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 |
The solvency ratios of The Chefs Warehouse Inc indicate its ability to meet its financial obligations in the long term.
- The Debt-to-assets ratio has been decreasing steadily from 0.45 in March 2020 to 0.37 in December 2024. This trend suggests that the company's dependence on debt in relation to its total assets has been declining over the period.
- The Debt-to-capital ratio has also shown a decreasing trend, moving from 0.61 in March 2020 to 0.56 in September 2022, before slightly increasing to 0.56 in December 2022. Subsequently, it declined to 0.56 by September 2024. This indicates a reduction in the percentage of external financing compared to total capital employed.
- The Debt-to-equity ratio fluctuated during the period, ranging from a high of 1.68 in June 2023 to a low of 1.05 in June 2022. The ratio decreased to 1.28 by December 2024. These fluctuations suggest varying levels of leverage used by the company to finance its operations.
- The Financial leverage ratio has seen fluctuations as well, with a peak of 3.90 in June 2023 and a low of 2.67 in June 2020. The ratio decreased to 3.46 by December 2024. This metric reflects changes in the company's overall financial structure and the extent of its reliance on borrowed funds.
Overall, the decreasing trends in the Debt-to-assets and Debt-to-capital ratios indicate improved solvency and reduced reliance on debt financing over the period. However, the fluctuations in the Debt-to-equity and Financial leverage ratios suggest varying levels of leverage that The Chefs Warehouse Inc has utilized to support its operations during the period under review.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.63 | 2.46 | 2.35 | 2.16 | 2.22 | 1.60 | 1.56 | 1.85 | 1.96 | 3.02 | 3.49 | 2.16 | 0.61 | -2.85 | -3.94 | -5.14 | -4.90 | -1.80 | -0.68 | 1.46 |
The interest coverage ratio of The Chefs Warehouse Inc has shown fluctuations over the data period provided.
From March 31, 2020, to December 31, 2021, the interest coverage ratio was consistently negative, indicating that the company was not generating sufficient operating income to cover its interest expenses. This could be a cause for concern as it suggests financial distress and an increased risk of default on debt obligations during this period.
However, starting from March 31, 2022, the interest coverage ratio turned positive and increased steadily, reaching a peak of 3.49 on June 30, 2022. This positive trend indicates an improvement in the company's ability to meet its interest payments from its operating earnings.
Subsequently, the interest coverage ratio continued to hover around the 2 to 3 range from June 30, 2022, to December 31, 2024, suggesting a relatively stable financial position in terms of debt servicing capacity. A ratio above 1 indicates that the company is generating sufficient income to cover its interest expenses, with higher ratios implying a greater margin of safety.
Overall, the recent positive trend in the interest coverage ratio of The Chefs Warehouse Inc bodes well for the company's financial health and ability to meet its debt obligations. It indicates an improved ability to service its interest payments using operating profits, which is a positive signal for investors and creditors.