Hormel Foods Corporation (HRL)

Debt-to-equity 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-equity ratio		0.30	0.30	0.31	0.43	0.43	0.44	0.45	0.45	0.47	0.48	0.49	0.16	0.16	0.16	0.17	0.01	0.05	0.04	0.04	0.04

January 28, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,357,180K ÷ $7,844,110K
= 0.30

Hormel Foods Corp.'s debt-to-equity ratio has been relatively stable over the past eight quarters, ranging between 0.42 and 0.45. This indicates that the company has been maintaining a moderate level of debt in relation to its equity. A decreasing trend in the ratio could suggest improving financial health and lower financial risk, while an increasing trend may indicate higher reliance on debt for financing operations. It is essential to consider industry norms and compare with peers to gain a better understanding of Hormel Foods Corp.'s leverage position. Overall, the consistent range of the debt-to-equity ratio implies management is maintaining a balanced capital structure in the company's financial operations.