Hormel Foods Corporation (HRL)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	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	5,921,460	5,887,070	5,897,340
Debt-to-capital ratio		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	0.04	0.04	0.04

January 28, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,357,180K ÷ ($2,357,180K + $7,844,110K)
= 0.23

Hormel Foods Corp.'s debt-to-capital ratio has remained stable at 0.30 for the past five consecutive quarters, indicating that the company has maintained a consistent level of debt relative to its total capital structure during this period. This ratio suggests that 30% of Hormel's capital is derived from debt, while the remaining 70% is funded by equity. The slight increase to 0.31 in Q3 and Q2 of 2022 may indicate a temporary shift towards slightly higher debt levels, but the subsequent return to 0.30 indicates a reversion to the previous capital structure. Overall, the company's consistent debt-to-capital ratio reflects a balanced approach to financing its operations and investments, with a significant reliance on equity capital to support its business activities.