Cal-Maine Foods Inc (CALM)
Financial leverage ratio
| Jun 1, 2024 | Mar 2, 2024 | Dec 2, 2023 | Sep 2, 2023 | Jun 3, 2023 | Feb 25, 2023 | Nov 26, 2022 | Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,184,760 | 2,133,530 | 1,966,800 | 1,900,370 | 1,954,520 | 1,992,480 | 1,763,440 | 1,554,730 | 1,427,490 | 1,282,000 | 1,231,990 | 1,211,730 | 1,229,170 | 1,231,280 | 1,200,360 | 1,167,880 | 1,206,690 | 1,117,030 | 1,111,280 | 1,096,870 |
| Total stockholders’ equity | US$ in thousands | 1,800,150 | 1,723,750 | 1,626,410 | 1,613,340 | 1,611,080 | 1,535,990 | 1,320,960 | 1,188,320 | 1,104,550 | 1,030,330 | 997,448 | 995,567 | 1,012,780 | 1,016,450 | 1,004,710 | 991,945 | 1,009,680 | 947,448 | 933,731 | 941,301 |
| Financial leverage ratio | 1.21 | 1.24 | 1.21 | 1.18 | 1.21 | 1.30 | 1.33 | 1.31 | 1.29 | 1.24 | 1.24 | 1.22 | 1.21 | 1.21 | 1.19 | 1.18 | 1.20 | 1.18 | 1.19 | 1.17 |
June 1, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,184,760K ÷ $1,800,150K
= 1.21
The financial leverage ratio of Cal-Maine Foods Inc has shown fluctuations over the past several quarters, ranging from 1.17 to 1.33. The ratio measures the company's level of debt in relation to its equity, indicating the extent to which the company is utilizing debt to finance its operations.
A higher financial leverage ratio suggests that the company has a higher level of debt relative to equity, which can potentially amplify returns on equity but also increases financial risk. Conversely, a lower ratio implies a more conservative financial structure with less reliance on debt financing.
In the case of Cal-Maine Foods Inc, the ratio has generally been above 1.20, indicating a moderate to high level of financial leverage. It is important to note that changes in the ratio can be influenced by various factors, such as changes in the company's capital structure, profitability, and overall financial health.
Investors and analysts closely monitor the financial leverage ratio to assess the company's risk profile and debt management strategies. A sustained increase in the ratio may indicate growing financial risk, while a decreasing trend could signal improved financial stability. Further analysis of the company's financial statements and overall business performance is recommended to gain a comprehensive understanding of its financial leverage position.