Hormel Foods Corporation (HRL)
Debt-to-equity ratio
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,850,940 | 2,358,720 | 3,290,550 | 3,315,150 | 1,044,940 |
| Total stockholders’ equity | US$ in thousands | 7,993,420 | 7,734,880 | 7,535,280 | 6,972,880 | 6,425,550 |
| Debt-to-equity ratio | 0.36 | 0.30 | 0.44 | 0.48 | 0.16 |
October 27, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,850,940K ÷ $7,993,420K
= 0.36
The debt-to-equity ratio of Hormel Foods Corporation has shown fluctuations over the past five years. As of October 27, 2024, the ratio stands at 0.36, indicating that for every dollar of equity, the company has $0.36 in debt.
Comparing this to the previous years, we can see a downward trend from 2021 to 2023, where the ratio decreased from 0.48 to 0.30. However, in 2024, there was an increase to 0.36, moving away from the lowest point reached in 2023.
The significant decrease in the ratio in 2020 to 0.16 suggests a substantial decrease in debt relative to the equity the company held during that period. In contrast, the rise in the ratio to 0.44 in 2022 indicates an increase in debt compared to equity.
Overall, the fluctuations in the debt-to-equity ratio reflect the company's changing financial structure and leverage levels over the years, highlighting the importance of monitoring and managing debt levels in relation to shareholder equity.