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.