ConAgra Foods Inc (CAG)

Financial leverage ratio

		May 26, 2024	May 28, 2023	May 29, 2022	May 30, 2021	May 31, 2020
Total assets	US$ in thousands	20,862,300	22,052,600	22,435,100	22,195,600	22,304,000
Total stockholders’ equity	US$ in thousands	8,440,400	8,736,800	8,787,700	8,551,800	7,876,100
Financial leverage ratio		2.47	2.52	2.55	2.60	2.83

May 26, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $20,862,300K ÷ $8,440,400K
= 2.47

ConAgra Foods Inc's financial leverage ratio has displayed a declining trend over the last five years, decreasing from 2.83 in May 2020 to 2.47 in May 2024. This indicates a relative reduction in the company's reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests that ConAgra Foods has been using less debt in its capital structure compared to its equity, which may imply a more conservative financial strategy. However, it is important to note that a lower financial leverage ratio may also limit the company's potential for leveraging debt for potential growth opportunities. Overall, the trend in ConAgra Foods' financial leverage ratio signals a move towards a more balanced and less leveraged capital structure.