Smart Global Holdings Inc (SGH)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	222,475	371,611	310,251	282,104	273,460
Debt-to-equity ratio		3.39	0.00	1.10	0.69	0.67

August 25, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $754,820K ÷ $222,475K
= 3.39

The debt-to-equity ratio of SMART Global Holdings Inc has exhibited a significant increase over the past five years, indicating a higher reliance on debt to finance its operations and investment activities. The ratio rose from 0.76 in 2019 to 3.55 in 2023. This suggests that the company's level of debt in relation to its equity has been growing, potentially raising concerns about its financial leverage and ability to manage debt obligations. This upward trend in the ratio may attract attention from stakeholders and creditors, as it reflects a more aggressive capital structure and increased financial risk. Further analysis and consideration of the company's overall financial health and its ability to service and manage its debt obligations would be necessary to better understand the implications of this trend.