Wingstop Inc (WING)

Debt-to-capital ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	1,206,200	713,729	713,258	712,790	712,327	711,867	711,411	705,483	706,846	708,176	709,546	710,918	469,394	469,084	468,774	466,056	466,933	311,240	310,846	310,461
Total stockholders’ equity	US$ in thousands	-675,586	-447,466	-437,541	-434,379	-457,366	-475,442	-365,351	-379,790	-390,861	-406,596	-415,470	-424,227	-309,525	-314,132	-322,243	-331,728	-341,310	-183,537	-192,672	-202,948
Debt-to-capital ratio		2.27	2.68	2.59	2.56	2.79	3.01	2.06	2.17	2.24	2.35	2.41	2.48	2.94	3.03	3.20	3.47	3.72	2.44	2.63	2.89

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 some fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at 2.89 on March 31, 2020, indicating that debt represented 2.89% of the company's total capital. It decreased to 2.35 by September 30, 2022, before rising again to 3.01 on September 30, 2023.

Overall, the general trend shows that the company has been managing its debt levels relative to its total capital. A lower debt-to-capital ratio generally indicates a stronger financial position as it suggests that the company relies less on debt financing. In Wingstop Inc's case, the ratio fluctuated within a moderate range, indicating a balanced approach to capital structure management.

However, it is important for the company to monitor this ratio closely to ensure that its debt levels remain sustainable and aligned with its overall financial strategy.