Hormel Foods Corporation (HRL)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 7,734,880 | 7,535,280 | 6,972,880 | 6,425,550 | 5,921,460 |
| Debt-to-capital ratio | 0.23 | 0.30 | 0.32 | 0.14 | 0.04 |
October 29, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,358,720K ÷ ($2,358,720K + $7,734,880K)
= 0.23
The debt-to-capital ratio of Hormel Foods Corp. has fluctuated over the past five years. In 2019, the ratio was 0.04, indicating a low reliance on debt to fund its operations relative to its capital. However, in 2021, the ratio increased to 0.32, signifying a higher proportion of debt in relation to the company's total capital. This increase may suggest a shift towards using more debt to finance the company's growth or operations. In the most recent period, the ratio has remained relatively stable at 0.30, indicating that Hormel Foods Corp. continues to maintain a moderate level of debt relative to its total capital structure. Further analysis of the company's debt management and capital structure could provide additional insights into its financial health and risk profile.