John B Sanfilippo & Son Inc (JBSS)
Debt-to-capital ratio
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 23, 2021 | Sep 23, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 6,496 | 6,638 | 6,654 | 7,033 | 7,421 | 6,865 | 8,118 | 9,583 | 11,179 | 12,669 | 14,282 | 15,360 | 16,210 | 16,250 | 17,180 | 18,489 | 20,186 | 22,946 | 24,164 | 25,710 |
| Total stockholders’ equity | US$ in thousands | 322,613 | 321,812 | 307,237 | 287,367 | 292,207 | 292,318 | 275,663 | 269,163 | 278,821 | 254,779 | 241,803 | 228,165 | 242,494 | 230,903 | 244,007 | 223,299 | 238,238 | 243,268 | 228,916 | 234,050 |
| Debt-to-capital ratio | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.03 | 0.03 | 0.04 | 0.05 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | 0.08 | 0.08 | 0.09 | 0.10 | 0.10 |
June 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $6,496K ÷ ($6,496K + $322,613K)
= 0.02
The debt-to-capital ratio of John B Sanfilippo & Son Inc has remained relatively stable over the past few years, ranging between 0.02 to 0.10. This ratio indicates the proportion of the company's capital that is financed through debt. A lower ratio suggests that the company relies more on equity financing, while a higher ratio indicates a greater reliance on debt.
The consistent low debt-to-capital ratios in recent quarters suggest that the company has a conservative approach to debt financing, with a preference for using equity to fund its operations and investments. This can be viewed positively as it lowers the financial risk associated with high levels of debt, providing a cushion in times of economic uncertainty.
However, the slight uptrend in the debt-to-capital ratio from 0.02 to 0.10 over the last few years may indicate a gradual increase in the company's debt levels relative to its capital. It would be important to monitor this trend closely to ensure that the company's debt remains at manageable levels and does not pose a risk to its financial stability in the long term.
Overall, the consistent low debt-to-capital ratios of John B Sanfilippo & Son Inc reflect a prudent approach to financial management, but the recent increase in the ratio highlights the importance of ongoing monitoring and evaluation of the company's capital structure and debt levels.
Peer comparison
Jun 30, 2024