JM Smucker Company (SJM)
Debt-to-equity 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-equity ratio | 0.88 | 0.59 | 0.53 | 0.43 | 0.66 |
April 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $6,773,700K ÷ $7,693,900K
= 0.88
The debt-to-equity ratio of JM Smucker Company has fluctuated over the past five years. In April 2024, the ratio increased to 0.88 from 0.59 in April 2023, indicating a higher level of debt relative to equity. This suggests that the company may have taken on more debt compared to its equity position, potentially increasing financial risk.
Looking back, the ratio was relatively stable between April 2021 and April 2023, ranging from 0.43 to 0.59. During this period, the company appeared to maintain a balanced mix of debt and equity in its capital structure, which could signal a prudent approach to financial management.
The ratio spiked to 0.66 in April 2020, suggesting a temporary increase in debt relative to equity. This could have been due to various factors such as strategic financing decisions, investments, or economic conditions impacting the company's capital structure at that time.
Overall, the trend in JM Smucker Company's debt-to-equity ratio indicates some fluctuations in its financial leverage over the past five years. Investors and stakeholders may want to closely monitor these changes to assess the company's risk profile and financial health.