Wingstop Inc (WING)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	-675,586	-457,366	-390,861	-309,525	-341,310
Debt-to-capital ratio		2.27	2.79	2.24	2.94	3.72

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,206,200K ÷ ($1,206,200K + $-675,586K)
= 2.27

The debt-to-capital ratio for Wingstop Inc has shown a downward trend from 3.72 at the end of 2020 to 2.27 at the end of 2024. This indicates that the company's reliance on debt to finance its operations relative to its total capital has decreased over the years, which could be seen as a positive sign for creditors and investors. However, the ratio experienced some fluctuations during this period, reaching its lowest point of 2.24 at the end of 2022 before slightly increasing to 2.79 at the end of 2023. Overall, the company appears to be managing its debt levels effectively while maintaining a healthy capital structure.