Simply Good Foods Co (SMPL)

Debt-to-equity 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-equity ratio		0.18	0.28	0.38	0.52	0.27

August 26, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $281,649K ÷ $1,571,100K
= 0.18

The debt-to-equity ratio of Simply Good Foods Co has shown a declining trend over the past five years, indicating a reduction in the company's reliance on debt financing relative to equity. As of August 26, 2023, the ratio stood at 0.18, marking a substantial decrease from 0.28 in the previous year. This implies that the company's financial structure has become less leveraged, which may signal improved financial stability and lower financial risk. However, it is important to note that a very low debt-to-equity ratio may also indicate underutilization of debt, potentially limiting the company's ability to benefit from leverage. Overall, the decreasing trend in the debt-to-equity ratio suggests a more conservative capital structure, which may positively impact the company's long-term financial health.