Chuy's Holdings Inc (CHUY)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	476,634	474,781	495,324	493,675	446,069
Total stockholders’ equity	US$ in thousands	249,847	244,561	262,794	241,858	194,936
Financial leverage ratio		1.91	1.94	1.88	2.04	2.29

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $476,634K ÷ $249,847K
= 1.91

Chuy's Holdings Inc's financial leverage ratio has been fluctuating over the past five years. The ratio was 1.91 at the end of 2023, slightly lower than the ratio of 1.94 at the end of 2022. This suggests that the company's reliance on debt financing decreased slightly in 2023 compared to the previous year. However, the ratio of 1.91 is still higher than the ratio of 1.88 at the end of 2021, indicating that the company's leverage position worsened in 2023 compared to 2021.

Furthermore, the financial leverage ratio of 1.91 in 2023 is lower than the ratios of 2.04 in 2020 and 2.29 in 2019. This indicates an improvement in the company's leverage position over the past two years. Generally, a lower financial leverage ratio suggests lower financial risk and less dependency on debt financing. Chuy's Holdings Inc may have reduced its debt levels or increased equity to achieve a more favorable leverage position in 2023 compared to the previous years.