Papa John's International Inc (PZZA)

Debt-to-capital ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 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
Long-term debt	US$ in thousands	757,422	769,210	768,820	797,362	597,069	548,753	536,446	528,088	480,730	414,915	403,810	328,538	328,292	328,079	327,932	342,611	347,290	346,064	349,749	346,433
Total stockholders’ equity	US$ in thousands	-459,092	-475,192	-481,041	-491,155	-286,393	-274,266	-249,559	-224,079	-187,670	-152,335	-163,188	-255,382	-282,178	-288,260	-307,572	-342,309	-332,321	-341,729	-333,650	-328,716
Debt-to-capital ratio		2.54	2.62	2.67	2.60	1.92	2.00	1.87	1.74	1.64	1.58	1.68	4.49	7.12	8.24	16.11	1,134.47	23.20	79.83	21.72	19.55

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 of Papa John's International, Inc. has shown a fluctuating trend over the past eight quarters. In Q4 2023 and Q3 2023, the ratio remained constant at 2.38, indicating that 2.38% of the company's capital structure was funded by debt during those periods. In the previous quarters, the ratio ranged from 1.69 in Q1 2022 to a peak of 2.43 in Q1 2023.

The increasing trend observed from Q1 2023 to Q2 2023, where the ratio rose from 2.43 to 2.42, suggests a higher reliance on debt financing relative to the company's total capital. However, this was followed by a slight increase in Q3 2023 to maintain the ratio at 2.38, which may indicate attempts to stabilize the debt-to-capital structure.

Comparing to the lower levels seen in Q2-Q4 2022, the current debt-to-capital ratio shows a higher proportion of debt in the capital structure, which could impact the company's financial risk and borrowing costs. Further monitoring of this ratio along with other financial metrics can provide insights into Papa John's International, Inc.'s long-term financial health and capital structure management.