Simply Good Foods Co (SMPL)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,571,100	1,438,660	1,188,800	1,139,330	712,868
Debt-to-capital ratio		0.15	0.22	0.28	0.34	0.21

August 26, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $281,649K ÷ ($281,649K + $1,571,100K)
= 0.15

The debt-to-capital ratio for Simply Good Foods Co has shown a declining trend over the past five years, indicating a decrease in the company's reliance on debt to finance its operations and growth. In August 2023, the debt-to-capital ratio stood at 0.15, reflecting a notable improvement from 0.22 in the previous year. This decrease suggests a more conservative capital structure and a reduced level of financial risk. It is important to note that a lower debt-to-capital ratio signifies a higher proportion of the company's capital being funded by equity, which may enhance financial stability and flexibility. Overall, the declining trend in the debt-to-capital ratio indicates a positive trajectory in Simply Good Foods Co's financial leverage and capital management.