Calavo Growers Inc (CVGW)
Debt-to-assets ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 7,300 | 6,000 | 7,100 | 7,100 | 6,200 |
| Total assets | US$ in thousands | 386,854 | 385,746 | 445,402 | 429,624 | 390,360 |
| Debt-to-assets ratio | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
October 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $7,300K ÷ $386,854K
= 0.02
The debt-to-assets ratio for Calavo Growers, Inc has fluctuated over the past five years. As of Oct 31, 2023, the ratio stands at 0.12, which indicates that the company has increased its reliance on debt to finance its assets compared to the previous year. This could be a cause for concern as a higher ratio suggests a greater risk of insolvency in the event of economic downturns or financial difficulties. It is advisable for stakeholders to closely monitor the company's debt management strategies and assess the potential impact on its financial stability and ability to meet its obligations.