Cracker Barrel Old Country Store (CBRL)

Debt-to-assets ratio

		Aug 2, 2024	Jul 28, 2023	Jul 29, 2022	Jul 30, 2021	Jul 31, 2020
Long-term debt	US$ in thousands	476,581	414,904	423,249	327,253	910,000
Total assets	US$ in thousands	2,161,490	2,218,090	2,294,910	2,391,690	2,544,260
Debt-to-assets ratio		0.22	0.19	0.18	0.14	0.36

August 2, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $476,581K ÷ $2,161,490K
= 0.22

The debt-to-assets ratio of Cracker Barrel Old Country Store has exhibited fluctuations over the past five years. In the most recent year ending August 2, 2024, the ratio stood at 0.22, indicating that 22% of the company's assets were financed by debt. This represents an increase from the previous year's ratio of 0.19.

Comparing the trend over the five-year period, the ratio has generally been relatively stable, with slight variations from year to year. In the most recent two years, there has been an upward trend in the debt-to-assets ratio, suggesting that the company may be relying more on debt financing to support its operations and growth initiatives.

It is important to note that a lower debt-to-assets ratio generally indicates lower financial risk, as it implies that a smaller proportion of the company's assets are financed by debt. Conversely, a higher ratio can indicate a higher level of financial leverage and potential risk.

In context, Cracker Barrel Old Country Store's current debt-to-assets ratio of 0.22 is below the ratio reported in the previous year but higher than the ratio reported in July 31, 2020. This may indicate a shift in the company's capital structure or strategic financing decisions. Further analysis of the company's overall financial health and performance would be needed to provide more insights into the implications of this ratio on the company's operations and future prospects.