Simply Good Foods Co (SMPL)

Debt-to-assets ratio

		Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019
Long-term debt	US$ in thousands	281,649	403,022	451,269	596,879	190,259
Total assets	US$ in thousands	2,097,080	2,094,250	2,052,220	2,008,440	1,141,650
Debt-to-assets ratio		0.13	0.19	0.22	0.30	0.17

August 26, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $281,649K ÷ $2,097,080K
= 0.13

The debt-to-assets ratio of Simply Good Foods Co has exhibited a declining trend over the past five years, indicating an improvement in the company's financial leverage and solvency. The ratio decreased from 0.30 in August 2020 to 0.13 in August 2023. This decrease suggests that the company has been reducing its reliance on debt financing in relation to its total assets, which may lead to lower financial risk and greater stability. The decreasing trend in the debt-to-assets ratio reflects positively on the company's ability to effectively manage its debt levels relative to its asset base.