Campbell Soup Company Common Stock (CPB)
Solvency ratios
| Jul 28, 2024 | Jul 30, 2023 | Jul 31, 2022 | Aug 1, 2021 | Aug 2, 2020 | |
|---|---|---|---|---|---|
| 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 | 3.29 | 3.57 | 3.72 | 4.83 |
The solvency ratios of Campbell Soup Company Common Stock demonstrate a consistent trend of having low debt levels relative to assets, capital, and equity over the past five years. The Debt-to-assets, Debt-to-capital, and Debt-to-equity ratios have all remained at 0.00, indicating that the company has not relied heavily on debt financing to fund its operations or expansion.
However, it's important to note that the Financial Leverage Ratio, which measures the extent of a company's leverage by comparing its total assets to shareholders' equity, has shown some fluctuations during the period under review. The ratio decreased from 4.83 in 2020 to 3.29 in 2023, before increasing to 4.02 in 2024. This suggests that while the company has a relatively conservative approach to debt, there have been fluctuations in its leverage position over time.
Overall, the solvency ratios reflect a prudent financial strategy by Campbell Soup Company Common Stock, with low debt levels indicating a strong financial position and reduced risk of financial distress.
Coverage ratios
| Jul 28, 2024 | Jul 30, 2023 | Jul 31, 2022 | Aug 1, 2021 | Aug 2, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 4.04 | 7.00 | 6.16 | 7.33 | 6.22 |
The interest coverage ratio for Campbell Soup Company Common Stock has fluctuated over the past five years, ranging from a low of 4.04 in the most recent period to a high of 7.33 in the second most recent period. This ratio measures the company's ability to meet its interest payments on outstanding debt with its operating income. A higher ratio indicates a stronger ability to meet interest obligations from operating profits.
The declining trend in the interest coverage ratio over the years may raise concerns about the company's ability to cover its interest expenses, particularly in the most recent period where the ratio dropped to 4.04. It suggests that the company may be facing challenges in generating sufficient operating income to cover its interest payments. Investors and creditors may view a declining interest coverage ratio as a sign of increased financial risk.
It is important for stakeholders to closely monitor Campbell Soup Company's interest coverage ratio and assess the factors contributing to its fluctuations to evaluate the company's financial health and ability to manage its debt obligations effectively.