Wingstop Inc (WING)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 1.68 | 1.47 | 1.58 | 1.73 | 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 |
| 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 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The solvency ratios of Wingstop Inc indicate the company's ability to meet its financial obligations in the long term.
1. Debt-to-assets ratio: This ratio measures the proportion of the company's assets financed by debt. Over the last few years, Wingstop's debt-to-assets ratio has fluctuated between 1.40 and 2.21. A lower ratio indicates less reliance on debt to fund assets, which can be seen in the downward trend from 2021 to 2023 before a slight increase in 2024.
2. Debt-to-capital ratio: This ratio shows the percentage of the company's capital that is financed by debt. Wingstop's debt-to-capital ratio ranged from 2.24 to 3.72. A lower ratio signifies a lower level of financial risk due to debt. The ratio has generally decreased from 2020 to 2024, indicating a reduction in debt relative to capital.
3. Debt-to-equity ratio: Unfortunately, data for this ratio is not provided for the analyzed period, which could indicate that Wingstop does not have significant levels of equity financing relative to debt.
4. Financial leverage ratio: Similarly, the financial leverage ratio data is not available, preventing a comprehensive analysis of the company's leverage level over time.
Overall, Wingstop Inc's solvency ratios reflect a mixed picture, with some improvements in debt management seen over the years, as indicated by the decrease in debt ratios. However, the lack of data for debt-to-equity and financial leverage ratios limits a complete assessment of the company's solvency position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 7.78 | 7.77 | 7.54 | 7.12 | 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 |
The interest coverage ratio of Wingstop Inc has shown a consistent upward trend over the past few years. Starting at 2.64 on March 31, 2020, the ratio has progressively improved, reaching 7.78 by December 31, 2024. This indicates that Wingstop Inc's ability to cover its interest expenses has strengthened over time. The company's interest coverage ratio consistently stayed above 1, suggesting that Wingstop Inc has ample earnings to cover its interest obligations. The increasing trend in the ratio reflects the company's enhanced financial health and capacity to service its debt obligations comfortably.