Wingstop Inc (WING)

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	712,327	706,846	469,394	466,933	307,669
Total stockholders’ equity	US$ in thousands	-457,366	-390,861	-309,525	-341,310	-209,428
Debt-to-capital ratio		2.79	2.24	2.94	3.72	3.13

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $712,327K ÷ ($712,327K + $-457,366K)
= 2.79

The debt-to-capital ratio of Wingstop Inc has shown fluctuation over the past five years. In 2023, the ratio increased to 2.79 from 2.24 in 2022, indicating that the company relied more on debt financing relative to its total capital structure in the most recent year. This upward trend in the ratio suggests a higher proportion of debt compared to equity in the company's capital structure, which can increase financial risk and interest expense.

Comparing this trend to the earlier years, the ratio was relatively higher in 2020 at 3.72 and in 2019 at 3.13, indicating a higher reliance on debt during those periods. The decrease in the ratio from 2020 to 2022 and the subsequent increase in 2023 may indicate changes in the company's financing strategy or capital structure adjustments over the years.

Overall, the fluctuation in Wingstop Inc's debt-to-capital ratio signifies varying levels of financial leverage and the company's ability to balance debt and equity components within its capital structure. Investors and stakeholders may closely monitor these changes to assess the company's financial health and risk profile.