Hormel Foods Corporation (HRL)
Debt-to-assets ratio
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,358,720 | 3,290,550 | 3,315,150 | 1,044,940 | 250,000 |
| Total assets | US$ in thousands | 13,448,800 | 13,306,900 | 12,696,300 | 9,908,280 | 8,109,000 |
| Debt-to-assets ratio | 0.18 | 0.25 | 0.26 | 0.11 | 0.03 |
October 29, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,358,720K ÷ $13,448,800K
= 0.18
The debt-to-assets ratio of Hormel Foods Corp. has shown some fluctuation over the past five years. The ratio was 0.25 as of October 29, 2023, consistent with the previous year. This indicates that for every dollar of assets, the company had 25 cents of debt. Comparing this to the ratio of 0.26 in fiscal year 2021, it suggests a slight improvement in the company's ability to cover its debt obligations with its assets. However, it is noteworthy that the ratio has increased significantly from the 0.03 reported in fiscal year 2019, indicating a higher reliance on debt financing in recent years. Overall, the trend in the debt-to-assets ratio warrants further examination of the company's capital structure and financial policies.