ConAgra Foods Inc (CAG)

Financial leverage ratio

May 31, 2025 Feb 28, 2025 Nov 30, 2024 Aug 31, 2024 May 31, 2024 May 26, 2024 Feb 29, 2024 Feb 25, 2024 Nov 30, 2023 Nov 26, 2023 Aug 31, 2023 Aug 27, 2023 May 31, 2023 May 28, 2023 Feb 28, 2023 Feb 26, 2023 Nov 30, 2022 Nov 27, 2022 Aug 31, 2022 Aug 28, 2022
Total assets US$ in thousands 22,568,100 20,744,500 21,018,100 21,247,800 20,862,300 20,862,300 21,919,900 21,919,900 22,120,000 22,120,000 22,365,400 22,365,400 22,052,600 22,052,600 22,454,200 22,454,200 22,414,000 22,414,000 22,219,500 22,219,500
Total stockholders’ equity US$ in thousands 8,932,700 8,779,100 8,800,700 8,695,600 8,440,400 8,440,400 9,154,900 9,154,900 9,004,000 9,004,000 8,884,500 8,884,500 8,736,800 8,736,800 8,866,400 8,866,400 8,666,300 8,666,300 8,504,300 8,504,300
Financial leverage ratio 2.53 2.36 2.39 2.44 2.47 2.47 2.39 2.39 2.46 2.46 2.52 2.52 2.52 2.52 2.53 2.53 2.59 2.59 2.61 2.61

May 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $22,568,100K ÷ $8,932,700K
= 2.53

The financial leverage ratio of ConAgra Foods Inc exhibits a generally stable trend over the specified period, with fluctuations indicating shifts in the company's leverage position. Starting at approximately 2.61 in August 2022, the ratio remains steady through the end of that year, reflecting a consistent level of financial leverage during this period. Subsequently, a gradual decline is observed, with the ratio decreasing to approximately 2.52 by May 2023, suggesting a modest reduction in the company's reliance on debt financing.

During the second half of 2023, the leverage ratio continues to decline slightly, reaching an interim low of 2.46 in November 2023. This indicates a further decrease in financial leverage, possibly reflecting efforts to reduce debt levels or improve equity position. However, in early 2024, the ratio drops to around 2.39, continuing the downward trend, but there is a slight uptick observed in May 2024 to approximately 2.47. This indicates a minor increase in leverage, which may correspond to strategic borrowing or other financial maneuvers.

Towards the latter part of 2024, the ratio stabilizes around 2.44, with a further decline to approximately 2.39 in November 2024. The ratio then slightly decreases again by February 2025 to about 2.36, reaching its lowest point in the observed period. An uptick occurs in May 2025, bringing the ratio back to roughly 2.53, indicating a moderate rise in leverage within this timeframe.

Overall, the financial leverage ratio demonstrates a pattern of gradual decline from its initial high, with intermittent fluctuations. The trend suggests that ConAgra Foods Inc has been modulating its leverage position, possibly aiming to balance debt and equity levels to optimize financial stability and risk management. The ratio's movement reflects careful adjustments in the company's capital structure, maintaining leverage within a relatively narrow range, indicative of a stable approach to leveraging over time.