Smart Global Holdings Inc (SGH)

Debt-to-assets ratio

		Aug 25, 2023	Aug 26, 2022	Aug 27, 2021	Aug 28, 2020	Aug 30, 2019
Long-term debt	US$ in thousands	754,820	—	340,484	195,573	182,450
Total assets	US$ in thousands	1,505,960	1,572,060	1,344,800	786,608	704,137
Debt-to-assets ratio		0.50	0.00	0.25	0.25	0.26

August 25, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $754,820K ÷ $1,505,960K
= 0.50

The debt-to-assets ratio of SMART Global Holdings Inc has exhibited fluctuations over the past five years. The ratio has shown an increasing trend from 0.25 in August 2020 to 0.52 in August 2023. This indicates that the company's reliance on debt relative to its total assets has grown over this period. A higher debt-to-assets ratio suggests a greater proportion of the company's assets is financed by debt, which could potentially amplify financial risk. It would be important to assess the reasons behind this increase and understand the company's debt management strategies in order to evaluate the potential impact on its financial stability and performance.