Wingstop Inc (WING)

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	712,327	706,846	469,394	466,933	307,669
Total assets	US$ in thousands	377,825	424,190	249,203	211,565	166,113
Debt-to-assets ratio		1.89	1.67	1.88	2.21	1.85

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $712,327K ÷ $377,825K
= 1.89

The debt-to-assets ratio of Wingstop Inc has shown fluctuations over the past five years. In 2023, the ratio increased to 1.89 from 1.67 in 2022, indicating that the company's debt level in relation to its total assets has risen. This may suggest a higher proportion of assets financed by debt in 2023 compared to the previous year.

Comparing the ratios for 2023 and 2021, Wingstop Inc's debt-to-assets ratio remained relatively stable at 1.88 and 1.89 respectively. However, there was a notable increase in the ratio in 2023 compared to 2021, pointing towards a slight increase in the reliance on debt to finance its assets.

In 2020, the debt-to-assets ratio was significantly higher at 2.21, indicating a higher level of debt relative to assets compared to the surrounding years. This could suggest increased financial risk associated with higher debt levels, which may have impacted the company's financial position during that period.

In 2019, the ratio was 1.85, showing a lower debt-to-assets ratio compared to 2023 but slightly higher than 2022 and 2021. This implies a different debt structure in that year, suggesting varying financial strategies or conditions.

Overall, the trend in Wingstop Inc's debt-to-assets ratio reflects fluctuations in the company's debt management and financing decisions over the years, highlighting the importance of closely monitoring debt levels and their impact on the company's overall financial health.