JM Smucker Company (SJM)
Debt-to-capital ratio
| Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 6,773,700 | 8,121,100 | 7,771,700 | 4,315,100 | 4,314,200 | 4,313,300 | 4,312,400 | 4,311,500 | 4,310,600 | 4,309,700 | 4,308,800 | 3,517,500 | 3,516,800 | 3,915,300 | 3,914,500 | 4,672,800 | 5,373,300 | 4,583,300 | 4,584,500 | 4,685,300 |
| Total stockholders’ equity | US$ in thousands | 7,693,900 | 7,560,100 | 7,088,900 | 7,003,400 | 7,290,800 | 8,335,000 | 8,217,300 | 8,144,300 | 8,140,100 | 8,266,900 | 8,286,400 | 8,170,300 | 8,124,800 | 8,211,600 | 8,515,000 | 8,345,200 | 8,190,900 | 8,170,400 | 8,095,300 | 8,007,700 |
| Debt-to-capital ratio | 0.47 | 0.52 | 0.52 | 0.38 | 0.37 | 0.34 | 0.34 | 0.35 | 0.35 | 0.34 | 0.34 | 0.30 | 0.30 | 0.32 | 0.31 | 0.36 | 0.40 | 0.36 | 0.36 | 0.37 |
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 some fluctuations over the past few quarters. The ratio ranged from 0.30 to 0.52 during the period under review.
The trend indicates that the company's reliance on debt as a source of capital has slightly increased in recent quarters, as seen by the rise in the ratio from 0.30 in July 2021 to 0.52 in January 2024. This suggests that JM Smucker has been utilizing more debt to finance its operations and investments compared to its equity.
However, it's worth noting that the debt-to-capital ratio has also shown some variability, with fluctuations between 0.34 and 0.52. This variability could be attributed to factors such as changes in the company's capital structure, borrowing needs, or repayment of debt.
Overall, while the upward trend in the debt-to-capital ratio indicates an increasing reliance on debt, the fluctuations suggest that the company's capital structure may be subject to some variability. It would be essential for stakeholders to closely monitor these changes and assess the company's ability to manage its debt levels effectively.