Cracker Barrel Old Country Store (CBRL)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	440,149	483,825	511,479	663,633	418,389
Debt-to-capital ratio		0.52	0.46	0.45	0.33	0.69

August 2, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $476,581K ÷ ($476,581K + $440,149K)
= 0.52

The debt-to-capital ratio of Cracker Barrel Old Country Store has fluctuated over the past five years. In the most recent fiscal year ended August 2, 2024, the ratio stood at 0.52, which indicates that 52% of the company's capital structure is funded by debt. This represents an increase from the previous year when the ratio was 0.46.

Comparing this to historical data, the ratio has been relatively stable over the past three years, ranging from 0.45 to 0.46. However, there was a significant increase in the ratio in the fiscal year ended July 31, 2020, where it spiked to 0.69 before declining in the following years.

A higher debt-to-capital ratio implies a higher level of financial risk as the company relies more on debt financing. In contrast, a lower ratio indicates a healthier capital structure with a greater proportion of equity funding. It is essential for investors and stakeholders to monitor this ratio to assess the company's leverage and financial stability.