Simply Good Foods Co (SMPL)

Debt-to-capital ratio

		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	Aug 31, 2019	May 25, 2019
Long-term debt	US$ in thousands	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	190,259	190,429
Total stockholders’ equity	US$ in thousands	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	712,868	753,732
Debt-to-capital ratio		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	0.21	0.20

February 24, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $237,641K ÷ ($237,641K + $1,647,480K)
= 0.13

The debt-to-capital ratio of Simply Good Foods Co has been fluctuating over the past few years. The ratio provides insight into the company's financial leverage and how much of its capital structure is funded by debt versus equity.

From November 2019 to November 2021, the ratio remained relatively stable around 0.20, indicating a balanced mix of debt and equity in the company's capital structure. However, starting from February 2022, the ratio began to increase steadily, reaching a peak of 0.37 in August 2022. This suggests that Simply Good Foods Co has been taking on more debt relative to its total capital, potentially increasing its financial risk.

Subsequently, the ratio gradually decreased from August 2022 to May 2023 before showing a slight uptick in August 2023. Overall, the trend indicates a gradual decrease in financial leverage but with some fluctuations along the way.

It is important for investors and stakeholders to monitor the debt-to-capital ratio of Simply Good Foods Co to assess the company's ability to manage its debt levels and the associated risks.