Papa John's International Inc (PZZA)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	757,422	597,069	480,730	328,292	347,290
Total assets	US$ in thousands	875,005	864,227	885,704	872,770	730,721
Debt-to-assets ratio		0.87	0.69	0.54	0.38	0.48

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $757,422K ÷ $875,005K
= 0.87

The debt-to-assets ratio for Papa John's International, Inc. has shown a consistent upward trend over the past five years, increasing from 0.52 in 2019 to 0.90 in 2023. This indicates that the company's reliance on debt to finance its assets has been growing steadily. A higher debt-to-assets ratio suggests a higher level of financial leverage and potential financial risks.

In 2023, the debt-to-assets ratio of 0.90 means that 90% of Papa John's assets are financed by debt. This high ratio may indicate that the company has taken on significant debt relative to its asset base, which could potentially lead to financial instability if not managed effectively.

Overall, the increasing trend in the debt-to-assets ratio for Papa John's International, Inc. indicates a growing reliance on debt financing over the past five years, which may warrant further scrutiny into the company's financial health and risk management strategies.