Smart Global Holdings Inc (SGH)

Debt-to-capital ratio

		Mar 1, 2024	Dec 1, 2023	Aug 25, 2023	May 26, 2023	Feb 24, 2023	Nov 25, 2022	Aug 26, 2022	May 27, 2022	Feb 25, 2022	Nov 26, 2021	Aug 27, 2021	May 28, 2021	Feb 26, 2021	Nov 27, 2020	May 29, 2020	Feb 28, 2020	Nov 29, 2019	Aug 30, 2019	May 31, 2019	Mar 1, 2019
Long-term debt	US$ in thousands	740,663	748,299	754,820	782,258	789,364	796,985	—	485,026	483,911	341,150	340,484	338,047	210,811	197,634	193,547	191,593	177,303	182,450	188,428	194,537
Total stockholders’ equity	US$ in thousands	405,042	410,160	222,475	318,097	325,829	352,120	371,611	392,602	348,827	322,940	310,251	269,433	258,559	278,318	264,519	307,051	271,784	273,460	242,080	250,290
Debt-to-capital ratio		0.65	0.65	0.77	0.71	0.71	0.69	0.00	0.55	0.58	0.51	0.52	0.56	0.45	0.42	0.42	0.38	0.39	0.40	0.44	0.44

March 1, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $740,663K ÷ ($740,663K + $405,042K)
= 0.65

The debt-to-capital ratio for Smart Global Holdings Inc has shown some variation over the past few quarters. The ratio was relatively stable around 0.65 in the earlier part of the provided period but increased to 0.77 in the August 25, 2023, period. Subsequently, there was a slight decline in the ratio to 0.71 by Dec 1, 2023.

An interesting observation is the significant drop in the debt-to-capital ratio to 0.00 on August 26, 2022. This implies that the company had no debt relative to its capital during that period, which could indicate a strategic move to deleverage or a temporary event affecting the company's debt position.

Overall, the trend in the debt-to-capital ratio suggests some variability in the company's capital structure and leverage levels. Investors and stakeholders may want to further investigate the reasons behind these fluctuations to assess the company's financial health and risk profile.