Cal-Maine Foods Inc (CALM)
Debt-to-assets ratio
| Jun 1, 2024 | Jun 3, 2023 | May 28, 2022 | May 29, 2021 | May 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 2,184,760 | 1,954,520 | 1,427,490 | 1,229,170 | 1,206,690 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
June 1, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $2,184,760K
= 0.00
The debt-to-assets ratio for Cal-Maine Foods Inc has consistently been 0.00 over the past five years, indicating that the company has not used any debt to finance its operations and investments. This suggests that the company has been relying solely on equity financing to support its assets, which can be seen as a positive sign of financial stability and conservative financial management. However, it's important to note that a low debt-to-assets ratio may also indicate missed opportunities for leveraging debt to potentially enhance returns for shareholders. Further analysis would be needed to understand the reasoning behind the company's decision to maintain a debt-free capital structure.