ConAgra Foods Inc (CAG)
Debt-to-equity ratio
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 7,492,600 | 7,081,300 | 8,088,200 | 8,275,200 | 8,900,800 |
| Total stockholders’ equity | US$ in thousands | 8,440,400 | 8,736,800 | 8,787,700 | 8,551,800 | 7,876,100 |
| Debt-to-equity ratio | 0.89 | 0.81 | 0.92 | 0.97 | 1.13 |
May 26, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $7,492,600K ÷ $8,440,400K
= 0.89
The debt-to-equity ratio of ConAgra Foods Inc has shown a fluctuating trend over the past five years. In the most recent fiscal year ending on May 26, 2024, the ratio stands at 0.89, indicating that the company had $0.89 in debt for every $1 of equity. This represents a decrease from the previous year's ratio of 0.81.
The upward movement in the ratio from 0.81 in 2023 to 0.92 in 2022, followed by another increase to 0.97 in 2021, and a further rise to 1.13 in 2020, suggests that ConAgra Foods Inc had been relying more on debt financing relative to equity over these years. However, the recent decline in the ratio may indicate a shift towards a more balanced capital structure, with a reduced reliance on debt.
It is essential for stakeholders to monitor the debt-to-equity ratio of ConAgra Foods Inc over time to assess the company's leverage and financial risk. A decreasing trend in the ratio may indicate improved financial stability, while a rising trend could signal increased financial risk and potential challenges in servicing debt obligations.
Peer comparison
May 26, 2024