Simply Good Foods Co (SMPL)

Financial leverage 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
Total assets	US$ in thousands	2,436,140	2,185,630	2,147,570	2,115,060	2,097,080	2,080,000	2,088,680	2,093,060	2,094,250	2,114,660	2,087,900	2,043,340	2,052,220	2,039,120	2,021,520	2,015,220	2,008,440	2,040,140	2,001,350	2,016,060
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
Financial leverage ratio		1.41	1.29	1.30	1.32	1.33	1.36	1.40	1.43	1.46	1.47	1.49	1.69	1.73	1.75	1.74	1.70	1.76	1.74	1.78	1.88

August 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,436,140K ÷ $1,727,490K
= 1.41

The financial leverage ratio of Simply Good Foods Co has shown a somewhat fluctuating trend over the past several quarters. The ratio has ranged from 1.29 to 1.88 over this period, indicating changes in the company's use of debt to finance its operations.

In general, a financial leverage ratio above 1 suggests that the company is relying on debt to fund its operations, while a ratio below 1 indicates a stronger equity financing position. Simply Good Foods Co's ratios have consistently been above 1, with the highest ratio of 1.88 recorded in the most recent period.

The increasing trend in the financial leverage ratio over the quarters could signal a growing reliance on debt to support the company's activities. This may have implications for the company's financial risk and ability to meet its debt obligations in the long term.

It is important for stakeholders to carefully monitor the company's financial leverage ratio and assess its implications on the overall financial health and sustainability of Simply Good Foods Co.