Simply Good Foods Co (SMPL)

Debt-to-assets ratio

		Aug 31, 2024	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020
Long-term debt	US$ in thousands	397,485	281,649	403,022	451,269	596,879
Total assets	US$ in thousands	2,436,140	2,097,080	2,094,250	2,052,220	2,008,440
Debt-to-assets ratio		0.16	0.13	0.19	0.22	0.30

August 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $397,485K ÷ $2,436,140K
= 0.16

The debt-to-assets ratio for Simply Good Foods Co has demonstrated a decreasing trend over the past five years, indicating a stronger financial position in terms of leverage. The ratio decreased from 0.30 in 2020 to 0.16 in 2024, showing that the company has been able to reduce its reliance on debt in relation to its total assets. This improvement suggests a more conservative approach to financing operations and investments, which can enhance financial stability and reduce the risk of default. By continually lowering the debt-to-assets ratio, Simply Good Foods Co has likely improved its ability to cover debt obligations and potentially generate higher returns for shareholders.