Simply Good Foods Co (SMPL)

Debt-to-equity ratio

		Aug 31, 2024	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020
Long-term debt	US$ in thousands	397,485	281,649	403,022	451,269	596,879
Total stockholders’ equity	US$ in thousands	1,727,490	1,571,100	1,438,660	1,188,800	1,139,330
Debt-to-equity ratio		0.23	0.18	0.28	0.38	0.52

August 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $397,485K ÷ $1,727,490K
= 0.23

The debt-to-equity ratio of Simply Good Foods Co has shown fluctuating trends over the past five years, as indicated by the table data. As of August 31, 2024, the ratio stands at 0.23, representing an increase from the previous year's ratio of 0.18. This suggests that the company has a lower level of debt relative to equity in the current year compared to the prior year.

In the earlier years, the debt-to-equity ratio was higher, with a notable increase from 0.28 in 2022 to 0.38 in 2021, and a further increase to 0.52 in 2020. These higher ratios reflect a higher proportion of debt compared to equity in the company's capital structure during those years.

Overall, the downward trend in the debt-to-equity ratio since 2021 indicates that Simply Good Foods Co has been reducing its reliance on debt financing in favor of equity, which could potentially signify a strengthening financial position. However, it is essential to assess other financial metrics and industry benchmarks to gain a more comprehensive understanding of the company's leverage and financial health.