JM Smucker Company (SJM)
Debt-to-assets ratio
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 6,773,700 | 4,314,200 | 4,310,600 | 3,516,800 | 5,373,300 |
| Total assets | US$ in thousands | 20,273,700 | 14,991,400 | 16,055,000 | 16,284,200 | 16,970,400 |
| Debt-to-assets ratio | 0.33 | 0.29 | 0.27 | 0.22 | 0.32 |
April 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $6,773,700K ÷ $20,273,700K
= 0.33
The debt-to-assets ratio of JM Smucker Company has fluctuated over the past five years, ranging from 0.22 to 0.33. In Apr 30, 2024, the ratio stood at 0.33, indicating that for every dollar of assets, the company has $0.33 of debt. This represents an increase from the previous year when the ratio was 0.29. The ratio has generally been on an upward trend, except for a slight decrease in 2022.
A rising debt-to-assets ratio could signal that the company is becoming more leveraged and relying more on debt financing. However, it is important to note that JM Smucker Company's current ratio of 0.33 is still within a reasonable range and does not appear to be a cause for immediate concern. It is essential for the company to manage its debt levels prudently to ensure long-term financial stability and sustainability.