Simply Good Foods Co (SMPL)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,727,490	1,693,310	1,647,480	1,607,180	1,571,100	1,530,820	1,491,920	1,463,360	1,438,660	1,437,320	1,401,050	1,209,610	1,188,800	1,168,410	1,160,140	1,183,310	1,139,330	1,173,730	1,123,410	1,072,410
Debt-to-capital ratio		0.19	0.12	0.13	0.14	0.15	0.17	0.20	0.21	0.22	0.22	0.23	0.26	0.28	0.30	0.32	0.33	0.34	0.35	0.36	0.37

August 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $397,485K ÷ ($397,485K + $1,727,490K)
= 0.19

The debt-to-capital ratio of Simply Good Foods Co has shown a fluctuating trend over the past several quarters. The ratio has gradually increased from 0.12 in May 2024 to 0.37 in Nov 2019, with some slight variations in between. The upward trend indicates that the company has been relying more on debt financing relative to its total capital structure. As of Aug 31, 2024, the debt-to-capital ratio stands at 0.19, which suggests that around 19% of the company's capital is funded by debt.

It is important to note that a higher debt-to-capital ratio can indicate higher financial risk and potential difficulties in meeting debt obligations. Investors and creditors may closely monitor this ratio to assess the company's leverage and financial health. Simply Good Foods Co should continue to monitor and manage its debt levels prudently to maintain a healthy balance between debt and equity in its capital structure.