Campbell Soup Company Common Stock (CPB)
Solvency ratios
| Jul 31, 2024 | Jul 28, 2024 | Jul 31, 2023 | Jul 30, 2023 | Jul 31, 2022 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.02 | 4.02 | 3.29 | 3.29 | 3.57 |
Campbell Soup Company Common Stock demonstrates a strong solvency position based on its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all show a consistent and stable trend of 0.00 over the years, indicating that the company has minimal debt relative to its assets, capital, and equity. This signifies that Campbell Soup Company is not highly leveraged and has a low risk of financial distress.
Moreover, the Financial leverage ratio has shown a slight increase from 3.57 in July 31, 2022, to 4.02 in both July 28, 2024, and July 31, 2024. Although the increase indicates a higher level of financial leverage, the ratio remains relatively low, suggesting that the company relies more on equity financing rather than debt financing.
Overall, Campbell Soup Company Common Stock appears to have a solid solvency position, with minimal debt levels and a conservative capital structure. This indicates a lower risk for investors and creditors, as the company is efficiently managing its financial obligations and maintaining a healthy balance sheet.
Coverage ratios
| Jul 31, 2024 | Jul 28, 2024 | Jul 31, 2023 | Jul 30, 2023 | Jul 31, 2022 | |
|---|---|---|---|---|---|
| Interest coverage | 4.02 | 4.04 | 6.98 | 7.00 | 6.15 |
Campbell Soup Company Common Stock's interest coverage ratios have shown some fluctuations over the years. As of July 31, 2022, the interest coverage ratio was 6.15, indicating that the company generated 6.15 times more operating income than the interest expenses incurred during that period.
Subsequently, the interest coverage improved to 7.00 as of July 30, 2023, and remained relatively stable at 6.98 by July 31, 2023. However, there was a notable decline in the interest coverage ratio to 4.04 as of July 28, 2024, which was further marginalized to 4.02 by July 31, 2024.
The decreasing trend in the interest coverage ratio from 2023 to 2024 may raise concerns regarding the company's ability to comfortably meet its interest obligations through its operating income. It is essential for investors and stakeholders to closely monitor this ratio to assess the company's financial health and its capacity to cover its interest expenses efficiently in the future.