Wingstop Inc (WING)

Debt-to-assets ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands 1,206,200 712,327 706,846 469,394 466,933
Total assets US$ in thousands 716,246 377,825 424,190 249,203 211,565
Debt-to-assets ratio 1.68 1.89 1.67 1.88 2.21

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,206,200K ÷ $716,246K
= 1.68

The debt-to-assets ratio for Wingstop Inc has shown a gradual decline over the years, from 2.21 as of December 31, 2020, to 1.68 as of December 31, 2024. This indicates that the company's reliance on debt in relation to its total assets has decreased over the period. A lower debt-to-assets ratio is generally considered favorable as it suggests a lower risk of financial distress and indicates a stronger financial position. Despite a slight increase in the ratio in 2023, the overall trend shows an improvement in the company's leverage position and financial stability.