ConAgra Foods Inc (CAG)

Financial leverage ratio

		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	May 31, 2022
Total assets	US$ in thousands	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	22,435,100
Total stockholders’ equity	US$ in thousands	8,779,100	8,800,700	8,695,600	8,440,400	8,440,400	9,154,900	9,154,900	9,074,200	9,004,000	8,955,100	8,884,500	8,807,300	8,736,800	8,938,300	8,866,400	8,737,700	8,666,300	8,504,300	8,504,300	8,787,700
Financial leverage ratio		2.36	2.39	2.44	2.47	2.47	2.39	2.39	2.44	2.46	2.50	2.52	2.50	2.52	2.51	2.53	2.57	2.59	2.61	2.61	2.55

February 28, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $20,744,500K ÷ $8,779,100K
= 2.36

The financial leverage ratio of ConAgra Foods Inc has shown a gradual decreasing trend over the provided time period. The ratio started at 2.55 on May 31, 2022, and consistently decreased to reach 2.36 on February 28, 2025. This indicates that the company's reliance on debt to finance its operations has been declining over time.

A financial leverage ratio of 2.36 means that for every dollar of equity, ConAgra Foods Inc has $2.36 of debt. This suggests that the company has more debt relative to its equity, which may pose some risk, but the decreasing trend indicates a potential improvement in the company's overall financial health and risk profile.

It is important to note that while a decreasing trend in the financial leverage ratio can be positive, it is essential to consider the reasons behind this trend and assess the company's ability to manage its debt levels effectively while maintaining necessary financial flexibility and stability.