Smart Global Holdings Inc (SGH)

Financial leverage 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
Total assets	US$ in thousands	1,517,450	1,630,860	1,505,960	1,591,190	1,640,080	1,807,660	1,572,060	1,554,050	1,508,510	1,323,700	1,344,800	1,189,060	820,807	784,725	792,300	808,437	782,733	704,137	670,013	776,408
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
Financial leverage ratio		3.75	3.98	6.77	5.00	5.03	5.13	4.23	3.96	4.32	4.10	4.33	4.41	3.17	2.82	3.00	2.63	2.88	2.57	2.77	3.10

March 1, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,517,450K ÷ $405,042K
= 3.75

The financial leverage ratio of Smart Global Holdings Inc has shown fluctuations over the period analyzed. The ratio measures the company's ability to meet its financial obligations through a combination of debt and equity.

The trend indicates that the company's reliance on debt has varied, with higher ratios indicating higher financial leverage. In the recent period, the financial leverage ratio has ranged between 3.75 and 6.77. The peak at 6.77 in August 2023 suggests a higher level of debt relative to equity, indicating increased financial risk.

Despite some fluctuations, the overall financial leverage ratio has generally remained within a manageable range between 2.57 and 6.77 over the period analyzed. Investors and analysts should closely monitor the ratio to assess the company's financial stability and risk management strategies.