Hormel Foods Corporation (HRL)
Debt-to-assets ratio
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Jul 25, 2021 | Apr 25, 2021 | Jan 24, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | Oct 27, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,357,180 | 2,358,720 | 2,360,380 | 3,294,440 | 3,292,560 | 3,290,550 | 3,294,290 | 3,294,100 | 3,309,150 | 3,315,150 | 3,316,260 | 1,040,490 | 1,043,050 | 1,044,940 | 1,046,820 | 56,861 | 308,972 | 250,000 | 250,000 | 250,000 |
| Total assets | US$ in thousands | 13,513,000 | 13,448,800 | 13,426,800 | 13,315,700 | 13,283,000 | 13,306,900 | 13,140,400 | 13,122,300 | 12,827,000 | 12,696,300 | 12,332,200 | 9,889,000 | 9,957,930 | 9,908,280 | 9,600,470 | 8,395,180 | 8,290,110 | 8,109,000 | 7,954,580 | 7,935,740 |
| Debt-to-assets ratio | 0.17 | 0.18 | 0.18 | 0.25 | 0.25 | 0.25 | 0.25 | 0.25 | 0.26 | 0.26 | 0.27 | 0.11 | 0.10 | 0.11 | 0.11 | 0.01 | 0.04 | 0.03 | 0.03 | 0.03 |
January 28, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,357,180K ÷ $13,513,000K
= 0.17
The debt-to-assets ratio of Hormel Foods Corp. has remained consistent at 0.25 over the past eight quarters. This indicates that, on average, the company finances 25% of its assets through debt. A consistent ratio suggests that Hormel Foods Corp. has been effectively managing its debt levels relative to its asset base.
A debt-to-assets ratio of 0.25 typically signifies that the company relies more on equity financing rather than debt to fund its operations and investments. This could imply a lower risk of financial distress, as the company has a lower leverage ratio.
However, it is important to note that the interpretation of the debt-to-assets ratio should be considered within the context of the industry norms and the company's overall financial strategy. A stable ratio over time may indicate a conservative approach to capital structure management by Hormel Foods Corp.