Calavo Growers Inc (CVGW)
Debt-to-capital ratio
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 44,890 | 7,300 | 39,823 | — | — | 6,000 | — | — | — | 7,100 | — | — | — | 7,100 | — | — | — | 6,200 | — | — |
| Total stockholders’ equity | US$ in thousands | 201,131 | 208,837 | 217,695 | 211,868 | 215,487 | 222,356 | 224,656 | 222,601 | 222,031 | 225,515 | 257,882 | 270,357 | 260,294 | 254,530 | 267,970 | 282,754 | 285,386 | 284,181 | 297,440 | 285,953 |
| Debt-to-capital ratio | 0.18 | 0.03 | 0.15 | 0.00 | 0.00 | 0.03 | 0.00 | 0.00 | 0.00 | 0.03 | 0.00 | 0.00 | 0.00 | 0.03 | 0.00 | 0.00 | 0.00 | 0.02 | 0.00 | 0.00 |
January 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $44,890K ÷ ($44,890K + $201,131K)
= 0.18
The debt-to-capital ratio of Calavo Growers Inc has shown variability over the past two years, ranging from 0.00 to 0.18. This ratio indicates the proportion of the company's capital that is financed through debt. A decreasing trend in the ratio generally implies a lower reliance on debt for funding operations and investments, which can be seen in most recent periods, such as Jan 31, 2024 and Jul 31, 2023.
The significant spike in the ratio to 0.18 on Jan 31, 2024, may indicate a temporary increase in debt relative to capital in that period, potentially for financing specific projects or acquisitions. However, it is crucial to monitor this metric closely to ensure that the company's overall debt levels remain at manageable levels.
Overall, the downward trend in the debt-to-capital ratio over the past several periods suggests that Calavo Growers Inc has been successfully managing its debt levels relative to its capital base, which could positively impact the company's financial stability and flexibility in the long term.