Hormel Foods Corporation (HRL)
Debt-to-equity ratio
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 2,850,940 | — | 2,358,720 | — |
| Total stockholders’ equity | US$ in thousands | 7,993,420 | 7,993,420 | 7,734,880 | 7,734,880 | 7,535,280 |
| Debt-to-equity ratio | 0.00 | 0.36 | 0.00 | 0.30 | 0.00 |
October 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $7,993,420K
= 0.00
The debt-to-equity ratio of Hormel Foods Corporation provides insights into the company's financial leverage and risk management strategy. As of October 31, 2022, the company had no debt relative to its equity, indicating a conservative approach to financing operations. However, by October 29, 2023, the ratio increased to 0.30, suggesting a slight increase in debt compared to equity.
Interestingly, the ratio dropped back to 0.00 by October 31, 2023, indicating a decrease in debt levels or an increase in equity, which could signal improved financial strength or a shift in capital structure. However, by October 27, 2024, the ratio rose to 0.36, reflecting a higher proportion of debt in relation to equity.
Overall, while the debt-to-equity ratio fluctuated over the period analyzed, Hormel Foods Corporation maintains relatively low debt levels compared to equity, which may indicate a conservative financial approach and effective risk management practices.