Campbell Soup Company Common Stock (CPB)
Solvency ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.07 | 4.19 | 4.02 | 4.02 | 3.90 | 3.90 | 3.15 | 3.15 | 3.26 | 3.26 | 3.29 | 3.29 | 3.36 | 3.32 | 3.33 | 3.51 | 3.51 | 3.57 | 3.49 | 3.49 |
Campbell Soup Company Common Stock has displayed a consistent pattern of strong solvency ratios over the period under consideration. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been consistently at 0.00, indicating that the company has minimal debt relative to its assets and capital. This suggests that Campbell Soup Company Common Stock is not heavily reliant on debt financing to support its operations, which can be seen as a positive indicator of financial stability.
Furthermore, the financial leverage ratio has shown a declining trend from 3.49 in April 2022 to 4.07 in January 2025. While an increase in the financial leverage ratio can sometimes be a cause for concern as it may indicate higher financial risk, in this case, the overall level remains within a reasonable range and has not shown any significant spikes. This suggests that the company has been effectively managing its debt levels and maintaining a healthy balance between debt and equity in its capital structure.
Overall, based on the solvency ratios analyzed, Campbell Soup Company Common Stock appears to have a solid financial position with low debt levels and a prudent approach to managing its financial leverage.
Coverage ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.48 | 2.37 | 2.13 | 3.33 | 4.91 | 6.06 | 7.30 | 6.88 | 6.55 | 6.12 | 5.85 | 6.43 | 7.39 | 8.19 | 7.33 | 6.81 | 5.94 | 4.85 | 5.85 | 6.39 |
The interest coverage ratio provides insight into a company's ability to meet its interest obligations on its debt. A higher interest coverage ratio indicates that a company is more capable of covering its interest expenses with its operating income. Looking at the data provided for Campbell Soup Company Common Stock, we observe fluctuations in the interest coverage ratio over the given period.
In April 2022, the interest coverage ratio was 6.39, indicating the company's operating income was able to cover its interest expense approximately 6 times. This ratio decreased to 5.85 in May 2022 and further dropped to 4.85 by July 2022. This decline suggests a potential strain on the company's ability to cover its interest obligations.
However, there is a subsequent improvement in the interest coverage ratio from October 2022 onwards, with ratios ranging from 5.94 to 8.19 up until January 2024. These higher ratios indicate a stronger ability to cover interest expenses with operating income during this period.
From April 2024 onwards, there is a notable decrease in the interest coverage ratio, falling to as low as 2.13 by July 2024 and hovering around 2.37 to 2.48 until January 2025. These lower ratios may raise concerns about the company's ability to service its interest payments.
Overall, fluctuations in Campbell Soup Company's interest coverage ratio over the period suggest varying levels of financial stability and the need for continuous monitoring of the company's debt obligations relative to its operating income.