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GuruFocus has detected 6 Warning Signs with Cal-Maine Foods Inc \$CALM.
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Cal-Maine Foods Inc (NAS:CALM)
Debt-to-Equity
0.03 (As of Feb. 2017)

Cal-Maine Foods Inc's current portion of long-term debt for the quarter that ended in Feb. 2017 was \$15 Mil. Cal-Maine Foods Inc's long-term debt for the quarter that ended in Feb. 2017 was \$7 Mil. Cal-Maine Foods Inc's total equity for the quarter that ended in Feb. 2017 was \$866 Mil. Cal-Maine Foods Inc's debt to equity for the quarter that ended in Feb. 2017 was 0.03.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

Definition

Debt to Equity measures the financial leverage a company has.

Cal-Maine Foods Inc's Debt to Equity Ratio for the fiscal year that ended in May. 2016 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (16.32 + 9.25) / 915.275 = 0.03

Cal-Maine Foods Inc's Debt to Equity Ratio for the quarter that ended in Feb. 2017 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (15.449 + 7.302) / 866.416 = 0.03

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

In the calculation of Debt to Equity, we use the total of Current Portion of Long-Term Debt and Long-Term Debt divided by Total Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its Return on Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return on Equity companies.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Cal-Maine Foods Inc Annual Data

 May07 May08 May09 May10 May11 May12 May13 May14 May15 May16 deb2equity 0.73 0.35 0.42 0.36 0.21 0.16 0.13 0.10 0.07 0.03

Cal-Maine Foods Inc Quarterly Data

 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 deb2equity 0.09 0.08 0.07 0.05 0.03 0.03 0.03 0.03 0.03 0.03
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