JM Smucker Company (SJM)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 7,693,900 | 7,290,800 | 8,140,100 | 8,124,800 | 8,190,900 |
| Debt-to-capital ratio | 0.47 | 0.37 | 0.35 | 0.30 | 0.40 |
April 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $6,773,700K ÷ ($6,773,700K + $7,693,900K)
= 0.47
The debt-to-capital ratio of JM Smucker Company has shown fluctuations over the past five years. The ratio increased from 0.30 in April 2021 to 0.40 in April 2020, indicating a higher proportion of debt in the company's capital structure during that period. However, the ratio decreased to 0.35 in April 2022, signaling a reduction in the level of debt relative to total capital.
In the most recent year, April 2023, the debt-to-capital ratio further decreased to 0.37, suggesting a continued trend of decreasing reliance on debt financing. This trend appears to have reversed in April 2024, with the ratio increasing to 0.47, indicating a higher proportion of debt in the capital structure compared to the previous year.
Overall, the debt-to-capital ratio of JM Smucker Company has fluctuated over the years, indicating varying levels of debt relative to total capital. It is essential for investors and analysts to monitor these changes closely to assess the company's financial leverage and risk profile.