Papa John's International Inc (PZZA)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	-459,092	-286,393	-187,670	-282,178	-332,321
Debt-to-capital ratio		2.54	1.92	1.64	7.12	23.20

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $757,422K ÷ ($757,422K + $-459,092K)
= 2.54

The debt-to-capital ratio for Papa John's International, Inc. has been fluctuating over the past five years. In 2023, the ratio stands at 2.38, which indicates that the company has a relatively high level of debt compared to its total capital. This may suggest a higher financial risk as a significant portion of the company's capital structure is financed through debt.

In 2022 and 2021, the debt-to-capital ratios were 1.85 and 1.60, respectively, showing a decreasing trend compared to 2023. This could indicate that the company was actively reducing its debt levels relative to its capital during those years, which could be seen as a positive sign for investors and creditors.

In 2020, the ratio was 1.09, reflecting a significant decrease compared to the previous years. A low debt-to-capital ratio can indicate a conservative financial approach with a lower reliance on debt financing, which may reduce financial risk.

In 2019, the ratio increased to 1.27, indicating a slight uptick in the debt level relative to total capital compared to 2020. This could suggest a shift towards a higher debt financing strategy that year.

Overall, the fluctuating trend in Papa John's International, Inc.'s debt-to-capital ratio over the years indicates varying levels of leverage and financial risk management by the company. Investors and stakeholders should closely monitor this ratio to assess the company's ability to meet its debt obligations and the overall health of its capital structure.