Simply Good Foods Co (SMPL)

Debt-to-assets ratio

		Aug 31, 2024	May 25, 2024	Feb 24, 2024	Nov 25, 2023	Aug 26, 2023	May 27, 2023	Feb 25, 2023	Nov 26, 2022	Aug 27, 2022	May 28, 2022	Feb 26, 2022	Nov 27, 2021	Aug 28, 2021	May 29, 2021	Feb 27, 2021	Nov 28, 2020	Aug 29, 2020	May 30, 2020	Feb 29, 2020	Nov 30, 2019
Long-term debt	US$ in thousands	397,485	237,661	237,641	272,032	281,649	320,900	362,622	396,994	403,022	402,594	426,916	427,017	451,269	500,154	548,884	572,923	596,879	624,752	624,076	638,034
Total assets	US$ in thousands	2,436,140	2,185,630	2,147,570	2,115,060	2,097,080	2,080,000	2,088,680	2,093,060	2,094,250	2,114,660	2,087,900	2,043,340	2,052,220	2,039,120	2,021,520	2,015,220	2,008,440	2,040,140	2,001,350	2,016,060
Debt-to-assets ratio		0.16	0.11	0.11	0.13	0.13	0.15	0.17	0.19	0.19	0.19	0.20	0.21	0.22	0.25	0.27	0.28	0.30	0.31	0.31	0.32

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 of Simply Good Foods Co has shown some fluctuation over the past few quarters. The ratio has generally trended upwards, indicating a higher proportion of debt relative to assets. From November 2020 to August 2024, the ratio increased from 0.30 to 0.16, suggesting a decrease in the company's financial leverage.

A lower debt-to-assets ratio indicates a lower reliance on debt financing to fund operations and investments, which could be viewed positively by investors and creditors as it implies lower financial risk. However, it is important to consider the industry norms and the company's specific circumstances when evaluating the debt-to-assets ratio in isolation.

Overall, the trend of increasing debt-to-assets ratio for Simply Good Foods Co may signal a shift towards more leverage, which could impact the company's financial flexibility and risk profile in the future.