ConAgra Foods Inc (CAG)

ConAgra Foods Inc's solvency ratios based on the provided data show the following trends over the specified periods:

1. Debt-to-assets ratio: This ratio measures the proportion of the company's assets that are financed by debt. ConAgra Foods Inc had a debt-to-assets ratio of 0.00 on May 31, 2022 and May 31, 2023, indicating that the company had no debt to finance its assets during those periods. However, the ratio increased to 0.32 on May 28, 2023 and further to 0.36 on May 26, 2024, suggesting a gradual increase in debt use to finance assets.

2. Debt-to-capital ratio: This ratio assesses the extent to which a company's operations are funded by debt compared to equity. ConAgra Foods Inc maintained a debt-to-capital ratio of 0.00 on May 31, 2022 and May 31, 2023, signifying a debt-free capital structure during those periods. However, the ratio rose to 0.45 on May 28, 2023 and increased to 0.47 on May 26, 2024, indicating a higher reliance on debt to fund operations.

3. Debt-to-equity ratio: This ratio evaluates the balance between a company's debt and its equity. ConAgra Foods Inc had a debt-to-equity ratio of 0.00 on May 31, 2022 and May 31, 2023, demonstrating a debt-free equity structure during those periods. Nevertheless, the ratio climbed to 0.81 on May 28, 2023 and further to 0.89 on May 26, 2024, indicating a greater level of debt in relation to equity in the company's financial structure.

4. Financial leverage ratio: This ratio reveals the relationship between the company's assets and its equity. ConAgra Foods Inc had a relatively stable financial leverage ratio, decreasing from 2.55 on May 31, 2022 to 2.47 on both May 26, 2024 and May 31, 2024, possibly indicating effective management of assets and equity over time.

Overall, the analysis of ConAgra Foods Inc's solvency ratios highlights an increasing trend in debt usage to finance operations and assets, leading to a higher proportion of debt compared to equity in the company's financial structure. It is essential for stakeholders to closely monitor these ratios to assess the company's ability to meet its financial obligations and manage its solvency risk effectively.

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Coverage ratios

The interest coverage ratio for ConAgra Foods Inc has shown a declining trend over the period from May 31, 2022, to May 31, 2024. The ratio, which measures the company's ability to cover its interest expenses with its operating income, decreased from 4.09 in May 2022 to 2.40 in May 2024. This suggests that the company's ability to meet its interest obligations with its earnings has weakened over the period. A declining interest coverage ratio may raise concerns about the company's financial health and its ability to service its debt in the long run. It is important for investors and creditors to monitor this ratio closely to assess the company's financial risk and stability.