Wingstop Inc (WING)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 1.89 | 2.02 | 1.58 | 1.56 | 1.67 | 1.72 | 1.79 | 1.40 | 1.88 | 1.80 | 2.00 | 2.14 | 2.21 | 1.42 | 1.55 | 1.65 | 1.85 | 1.83 | 2.06 | 2.04 |
| Debt-to-capital ratio | 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 | 3.13 | 3.19 | 3.35 | 3.49 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Wingstop Inc's solvency ratios indicate its ability to meet its long-term financial obligations. The debt-to-assets ratio has shown a fluctuating trend over the past five quarters, ranging from 1.40 to 2.21. This ratio suggests that Wingstop relies on debt financing to fund its assets but has been able to manage its debt levels to a certain extent.
The debt-to-capital ratio has also exhibited variability, ranging from 2.06 to 3.72 over the same period. This ratio indicates the proportion of a company's capital structure that is financed by debt. The increasing trend in this ratio may signal a higher reliance padding: on debt to finance its operations and investments.
The absence of data for the debt-to-equity ratio and financial leverage ratio limits a comprehensive, holistic assessment of Wingstop's solvency using these particular metrics. However, based on the available information, it is evident that Wingstop's solvency position has been influenced by changes in its debt levels and capital structure in recent quarters. Further analysis and consideration of additional financial metrics are necessary to gain a more complete understanding of the company's overall financial health and solvency.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 6.18 | 5.99 | 5.29 | 4.67 | 4.33 | 3.93 | 4.19 | 4.58 | 4.92 | 4.57 | 3.96 | 3.88 | 3.42 | 3.32 | 3.21 | 2.64 | 2.50 | 2.59 | 2.79 | 3.18 |
The interest coverage ratio for Wingstop Inc has shown fluctuations over the past few years. The ratio, which measures the company's ability to cover its interest expenses with its operating income, has generally been on an upward trend since 2019.
In 2023, Wingstop Inc's interest coverage ratio ranged from 4.67 to 6.18, indicating that the company's operating income is sufficient to cover its interest expenses. This improvement suggests that Wingstop Inc has been able to generate more operating income relative to its interest expenses, which is a positive sign for creditors and investors.
However, it's worth noting that the interest coverage ratio experienced some fluctuations, with a decrease from 5.29 in June 2023 to 4.67 in March 2023. This could indicate a temporary strain on the company's ability to cover its interest obligations, which may be a cause for further analysis and monitoring.
Overall, Wingstop Inc's interest coverage ratio has generally improved over the years, reflecting a strengthening financial position in terms of meeting its interest obligations. Investors and stakeholders should continue to monitor the ratio for any changes that may impact the company's financial health.