Hormel Foods Corporation (HRL)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 7,993,420 | 7,867,120 | 7,885,990 | 7,844,110 | 7,734,880 | 7,713,260 | 7,686,510 | 7,613,900 | 7,535,280 | 7,361,680 | 7,339,400 | 7,100,590 | 6,972,880 | 6,788,280 | 6,700,670 | 6,550,530 | 6,425,550 | 6,267,420 | 6,162,060 | 6,091,760 |
| Debt-to-capital ratio | 0.26 | 0.27 | 0.27 | 0.23 | 0.23 | 0.23 | 0.30 | 0.30 | 0.30 | 0.31 | 0.31 | 0.32 | 0.32 | 0.33 | 0.13 | 0.14 | 0.14 | 0.14 | 0.01 | 0.05 |
October 27, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,850,940K ÷ ($2,850,940K + $7,993,420K)
= 0.26
The debt-to-capital ratio of Hormel Foods Corporation fluctuated over the past few years, ranging from 0.01 to 0.33. The ratio indicates the proportion of debt in the company's capital structure compared to equity.
The downward trend from 0.32 in Jan 2022 to 0.26 in Oct 2024 suggests a decrease in the reliance on debt financing relative to capital investment. This could signify an improved financial position, as lower debt levels reduce financial risk and interest expenses.
Overall, the company's debt-to-capital ratio has generally remained within a moderate range, indicating a balanced mix of debt and equity in capitalizing its operations. It is essential to monitor this ratio in conjunction with other financial metrics to assess the overall financial health and risk profile of the company.