Cal-Maine Foods Inc (CALM)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Cal-Maine Foods Inc has consistently maintained a low to zero level of debt relative to its assets, capital, and equity based on the debt-to-assets, debt-to-capital, and debt-to-equity ratios which have all been at 0.00 for each period analyzed. This indicates that the company relies significantly on equity financing rather than debt to fund its operations and investments.
The financial leverage ratio, which measures the extent of the company's financial leverage, has shown some fluctuations over the periods analyzed, ranging from 1.17 to 1.33. The increasing trend in the financial leverage ratio from 1.17 to 1.33 implies that the company has been taking on more debt relative to its equity over time, which may indicate a shift towards higher leverage.
Overall, Cal-Maine Foods Inc's solvency ratios suggest a conservative approach to financing, prioritizing equity financing and maintaining low levels of debt. The increasing trend in the financial leverage ratio, however, indicates a potential shift towards a slightly more leveraged capital structure in recent periods.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1,132.07 | 719.46 | 15.89 | 21.83 | 25.97 | 26.06 | 189.01 | 267.17 | 356.17 | -73.73 | -264.36 | -183.45 | -123.30 | 127.75 | 139.07 | 75.79 | 2.55 | -55.16 | -18.61 | -5.46 |
The interest coverage ratio of Cal-Maine Foods Inc has shown significant fluctuations over the past few quarters. In general terms, the interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt, with a higher ratio indicating a greater ability to meet interest obligations.
Looking at the data provided, we can see that the interest coverage ratio has varied widely, ranging from a high of 1,132.07 to a low of -73.73. When the interest coverage ratio is negative, as seen in some periods, it indicates that the company's earnings were insufficient to cover its interest expenses, which could be a concern for creditors and investors.
The company experienced a sharp decline in the interest coverage ratio in some quarters, such as February 2022 and November 2021, where the ratio fell into negative territory. This suggests a potential strain on the company's finances during those periods, impacting its ability to service its debt effectively.
On a positive note, there have been periods, like March 2024 and November 2022, where the interest coverage ratio improved significantly. This signals a stronger capacity to cover interest payments with earnings generated during those specific quarters.
Overall, the erratic behavior of Cal-Maine Foods Inc's interest coverage ratio indicates fluctuations in the company's financial health and ability to manage its debt obligations. It is essential for investors and stakeholders to closely monitor these trends to assess the company's financial stability and risk profile.