Hormel Foods Corporation (HRL)
Debt-to-assets ratio
| Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,850,940 | 2,851,620 | 2,852,600 | 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 |
| Total assets | US$ in thousands | 13,434,700 | 13,113,800 | 14,135,400 | 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 |
| Debt-to-assets ratio | 0.21 | 0.22 | 0.20 | 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 |
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 shown some fluctuations over the past few years, ranging from 0.01 to 0.27. This ratio indicates the proportion of the company's assets that are financed by debt.
From January 2020 to April 2023, the ratio remained relatively stable between 0.10 and 0.25, indicating a consistent level of debt compared to the total assets. However, there was a significant decrease in the ratio in the last two reported quarters of October 2023 and January 2024, which may suggest a reduction in debt levels relative to assets during that time period.
It is important to note that a lower debt-to-assets ratio generally signifies a lower financial risk for the company, as it indicates a lower reliance on debt financing. On the other hand, a higher ratio could indicate potential financial vulnerability in case of economic downturns or changes in interest rates.
Overall, monitoring the trend of the debt-to-assets ratio over time can provide valuable insights into Hormel Foods Corporation's financial health and its ability to manage its debt obligations relative to its total assets.