Arcos Dorados Holdings (Arcos Dorados Holdings) Debt-to-Equity : 3.66 (As of Sep. 2023)

View and export this data going back to 2011. Start your Free Trial

What is Arcos Dorados Holdings Debt-to-Equity?

Arcos Dorados Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $91 Mil. Arcos Dorados Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $1,524 Mil. Arcos Dorados Holdings's Total Stockholders Equity for the quarter that ended in Sep. 2023 was $442 Mil. Arcos Dorados Holdings's debt to equity for the quarter that ended in Sep. 2023 was 3.66.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Arcos Dorados Holdings's Debt-to-Equity or its related term are showing as below:

ARCO' s Debt-to-Equity Range Over the Past 10 Years
Min: 1.13 Med: 2.57 Max: 9.99
Current: 3.66

During the past 13 years, the highest Debt-to-Equity Ratio of Arcos Dorados Holdings was 9.99. The lowest was 1.13. And the median was 2.57.

ARCO's Debt-to-Equity is ranked worse than
87.09% of 302 companies
in the Restaurants industry
Industry Median: 0.945 vs ARCO: 3.66

Arcos Dorados Holdings Debt-to-Equity Historical Data

The historical data trend for Arcos Dorados Holdings's Debt-to-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Arcos Dorados Holdings Debt-to-Equity Chart

Arcos Dorados Holdings Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Debt-to-Equity

Get a 7-Day Free Trial

1.61

3.73

8.03

6.94

4.83

Arcos Dorados Holdings Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Debt-to-Equity	Get a 7-Day Free Trial															6.45	4.83	4.50	4.13	3.66

Competitive Comparison of Arcos Dorados Holdings's Debt-to-Equity

For the Restaurants subindustry, Arcos Dorados Holdings's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Arcos Dorados Holdings's Debt-to-Equity Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Arcos Dorados Holdings's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Arcos Dorados Holdings's Debt-to-Equity falls into.

Arcos Dorados Holdings Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Arcos Dorados Holdings's Debt to Equity Ratio for the fiscal year that ended in Dec. 2022 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(102.262	+	1459.345)	/	323.623
	=	4.83

Arcos Dorados Holdings's Debt to Equity Ratio for the quarter that ended in Sep. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(91.497	+	1523.559)	/	441.763
	=	3.66

Arcos Dorados Holdings (NYSE:ARCO) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Arcos Dorados Holdings Debt-to-Equity Related Terms

Thank you for viewing the detailed overview of Arcos Dorados Holdings's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.

Arcos Dorados Holdings (Arcos Dorados Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Arcos Dorados Holdings Inc (NYSE:ARCO) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

ARCO:Mexico AD8:Germany AD8:Germany ARCO:Argentina

Address

Dr. Luis Bonavita 1294, Office 501, WTC Free Zone, Montevideo, URY, 11300

Website

https://www.arcosdorados.com

Arcos Dorados Holdings Inc operates McDonald's-branded restaurants in approximately 20 countries and territories in Latin America and the Caribbean. It functions through two sources which include company-operated restaurants and franchised restaurants segment. Their menu includes hamburgers, McNuggets, salad, sandwiches, french fries and others.