Hormel Foods Corporation (HRL)
Debt-to-capital ratio
| Jan 31, 2025 | Oct 31, 2024 | Oct 27, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | 2,850,940 | — | 2,851,620 | — | 2,852,600 | — | 2,357,180 | — | 2,358,720 | — | 2,360,380 | — | — | 3,292,560 | — | 3,290,550 | — | 3,294,100 |
| Total stockholders’ equity | US$ in thousands | 8,028,340 | 7,993,420 | 7,993,420 | 7,867,120 | 7,867,120 | 7,885,990 | 7,885,990 | 7,844,110 | 7,844,110 | 7,734,880 | 7,734,880 | 7,713,260 | 7,713,260 | 7,686,510 | 7,613,900 | 7,613,900 | 7,535,280 | 7,535,280 | 7,361,680 | 7,339,400 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.26 | 0.00 | 0.27 | 0.00 | 0.27 | 0.00 | 0.23 | 0.00 | 0.23 | 0.00 | 0.23 | 0.00 | 0.00 | 0.30 | 0.00 | 0.30 | 0.00 | 0.31 |
January 31, 2025 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $8,028,340K)
= 0.00
The debt-to-capital ratio of Hormel Foods Corporation has exhibited fluctuations over the periods indicated. As of January 31, 2025, the company had a debt-to-capital ratio of 0.00, indicating that it had no debt as a proportion of its total capital. This suggests that Hormel Foods Corporation relied primarily on equity to finance its operations at that point in time. Prior to this date, the company's debt-to-capital ratio varied between 0.23 and 0.31, showing a mix of debt and equity in its capital structure.
The significant shifts in the debt-to-capital ratio over the periods analyzed could be attributed to various factors, such as changes in borrowing levels, debt repayment strategies, and capital raising activities. A lower debt-to-capital ratio typically reflects lower financial risk and may indicate a more conservative approach to financing operations. On the other hand, a higher ratio could suggest a greater reliance on debt financing, which may entail higher financial risk but could also offer the potential for increased returns.
Overall, monitoring the debt-to-capital ratio of Hormel Foods Corporation provides insights into the company's capital structure and financial risk profile, which are essential considerations for investors, creditors, and other stakeholders evaluating the company's financial health and performance.