ConAgra Foods Inc (CAG)
Financial leverage ratio
| May 26, 2024 | Feb 25, 2024 | Nov 26, 2023 | Aug 27, 2023 | May 28, 2023 | Feb 26, 2023 | Nov 27, 2022 | Aug 28, 2022 | May 29, 2022 | Feb 27, 2022 | Nov 28, 2021 | Aug 29, 2021 | May 30, 2021 | Feb 28, 2021 | Nov 29, 2020 | Aug 30, 2020 | May 31, 2020 | Feb 23, 2020 | Nov 24, 2019 | Aug 25, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 20,862,300 | 21,919,900 | 22,120,000 | 22,365,400 | 22,052,600 | 22,454,200 | 22,414,000 | 22,219,500 | 22,435,100 | 22,499,300 | 22,592,000 | 22,539,900 | 22,195,600 | 22,105,100 | 22,276,700 | 22,377,300 | 22,304,000 | 22,202,100 | 22,492,600 | 22,354,500 |
| Total stockholders’ equity | US$ in thousands | 8,440,400 | 9,154,900 | 9,004,000 | 8,884,500 | 8,736,800 | 8,866,400 | 8,666,300 | 8,504,300 | 8,787,700 | 8,774,600 | 8,679,000 | 8,557,000 | 8,551,800 | 8,251,800 | 8,392,000 | 8,121,400 | 7,876,100 | 7,785,000 | 7,612,100 | 7,440,100 |
| Financial leverage ratio | 2.47 | 2.39 | 2.46 | 2.52 | 2.52 | 2.53 | 2.59 | 2.61 | 2.55 | 2.56 | 2.60 | 2.63 | 2.60 | 2.68 | 2.65 | 2.76 | 2.83 | 2.85 | 2.95 | 3.00 |
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 fluctuations over the past few quarters, ranging from 2.39 to 3.00. The trend indicates an overall increase in leverage over time, with the ratio peaking at 3.00 in the most recent period. This suggests that the company's reliance on debt to finance its operations and investments has been rising.
A financial leverage ratio greater than 1 indicates that the company has more debt than equity in its capital structure. In ConAgra's case, the ratios consistently above 2 imply a substantial proportion of debt relative to equity. While higher leverage can amplify returns in a favorable market environment, it also increases the company's financial risk, especially in periods of economic downturn or rising interest rates.
It is essential for investors and stakeholders to closely monitor ConAgra's financial leverage ratio to assess the company's ability to meet its debt obligations and manage its financial health effectively. Additionally, a high leverage ratio may impact the company's credit rating and cost of borrowing, influencing its overall competitiveness in the market.
Peer comparison
May 26, 2024