JM Smucker Company (SJM)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 20,273,700 | 20,247,200 | 18,123,700 | 14,711,800 | 14,991,400 | 16,017,500 | 16,219,300 | 16,276,700 | 16,055,000 | 15,966,400 | 16,240,800 | 16,211,700 | 16,284,200 | 16,429,400 | 16,929,700 | 16,902,300 | 16,970,400 | 16,636,200 | 16,791,000 | 16,791,600 |
| 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 |
| Financial leverage ratio | 2.64 | 2.68 | 2.56 | 2.10 | 2.06 | 1.92 | 1.97 | 2.00 | 1.97 | 1.93 | 1.96 | 1.98 | 2.00 | 2.00 | 1.99 | 2.03 | 2.07 | 2.04 | 2.07 | 2.10 |
April 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $20,273,700K ÷ $7,693,900K
= 2.64
The financial leverage ratio of JM Smucker Company has been fluctuating over the past several quarters. The ratio was relatively stable around the 2.00 range from January 2021 to April 2022, indicating a consistent level of leverage during that period. However, there was a notable increase in leverage in the subsequent quarters, with the ratio peaking at 2.68 in January 2024, before slightly decreasing to 2.64 in April 2024.
This increase in leverage suggests that the company may have taken on more debt or increased its financial risk during this time frame. It is important to closely monitor the trend in the financial leverage ratio to assess the company's ability to meet its financial obligations and manage its debt levels effectively. A higher financial leverage ratio typically indicates higher financial risk, as the company has a larger proportion of debt in its capital structure compared to equity.