Bellring Brands LLC (BRBR)

Debt-to-assets ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Long-term debt	US$ in thousands	856,800	929,500	481,200	622,600
Total assets	US$ in thousands	691,600	707,200	696,500	653,500
Debt-to-assets ratio		1.24	1.31	0.69	0.95

September 30, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $856,800K ÷ $691,600K
= 1.24

The debt-to-assets ratio measures the proportion of a company's assets that are financed by debt. A higher ratio indicates greater financial leverage and potential risk. Bellring Brands Inc's debt-to-assets ratio has fluctuated over the past five years.

In 2019, the company had no debt relative to its assets, which suggests a conservative financial structure. However, in 2021, the ratio increased to 0.86, indicating a moderate level of debt financing. This ratio further increased to 1.05 in 2020 and 1.31 in 2022, demonstrating a trend of higher reliance on debt to fund its assets.

As of September 30, 2023, the debt-to-assets ratio rose to 1.24, signifying that approximately 124% of the company's assets are financed by debt. This indicates a relatively high level of financial leverage, which may raise concerns about the company's ability to service its debt obligations and potential financial risk.

Overall, the increasing trend in the debt-to-assets ratio for Bellring Brands Inc suggests a shift towards a more leveraged capital structure, potentially increasing its financial risk and impacting its ability to withstand economic downturns or operational challenges.