Campbell Soup Company Common Stock (CPB)
Financial leverage ratio
| Jul 28, 2024 | Jul 30, 2023 | Jul 31, 2022 | Aug 1, 2021 | Aug 2, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 15,235,000 | 12,058,000 | 11,892,000 | 11,734,000 | 12,372,000 |
| Total stockholders’ equity | US$ in thousands | 3,794,000 | 3,661,000 | 3,331,000 | 3,152,000 | 2,563,000 |
| Financial leverage ratio | 4.02 | 3.29 | 3.57 | 3.72 | 4.83 |
July 28, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $15,235,000K ÷ $3,794,000K
= 4.02
The financial leverage ratio of Campbell Soup Company Common Stock has exhibited fluctuations over the past five years. The ratio, which measures the extent of a company's debt financing in relation to its equity, increased from 3.72 in 2021 to 4.02 in 2024, indicating a higher level of financial leverage. This upward trend suggests that the company has been relying more on debt to finance its operations and investments compared to equity.
It is worth noting that the financial leverage ratio was at its lowest in 2023 at 3.29 and peaked in 2020 at 4.83 before decreasing in subsequent years. A higher financial leverage ratio can magnify profits during good economic conditions but also increase the risk of financial distress during economic downturns.
Overall, the increasing trend in Campbell Soup Company's financial leverage ratio implies a growing reliance on debt to support its business activities and future growth, potentially impacting the company's financial stability and risk profile in the long run.
Peer comparison
Jul 28, 2024