Hormel Foods Corporation (HRL)
Debt-to-assets ratio
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,850,940 | 2,358,720 | 3,290,550 | 3,315,150 | 1,044,940 |
| Total assets | US$ in thousands | 13,434,700 | 13,448,800 | 13,306,900 | 12,696,300 | 9,908,280 |
| Debt-to-assets ratio | 0.21 | 0.18 | 0.25 | 0.26 | 0.11 |
October 27, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,850,940K ÷ $13,434,700K
= 0.21
The debt-to-assets ratio of Hormel Foods Corporation has exhibited fluctuations over the past five years, ranging from 0.11 to 0.26. In 2024, the ratio stands at 0.21, slightly higher than the previous year's figure of 0.18. This indicates that in 2024, the company finances approximately 21% of its total assets through debt, suggesting a moderate level of leverage compared to its asset base.
The increasing trend observed from 2022 to 2023, where the ratio rose from 0.25 to 0.26, signified a higher reliance on debt to fund assets during that period. However, the subsequent decrease in 2023 potentially reflects a strategic shift towards reducing debt levels relative to total assets.
It is important to note that the ratio of 0.11 in 2020 represented a significant decrease in leverage, indicating a conservative approach to debt management during that period. Overall, the fluctuations in Hormel Foods Corporation's debt-to-assets ratio indicate varying degrees of debt utilization and financial risk management over the past five years.