Hormel Foods Corporation (HRL)

Debt-to-equity ratio

		Oct 27, 2024	Jul 28, 2024	Apr 28, 2024	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
Long-term debt	US$ in thousands	2,850,940	2,851,620	2,852,600	2,357,180	2,358,720	2,360,380	3,294,440	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
Total stockholders’ equity	US$ in thousands	7,993,420	7,867,120	7,885,990	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
Debt-to-equity ratio		0.36	0.36	0.36	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

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 been relatively stable over the periods indicated in the table. The ratio fluctuated around the 0.30 to 0.50 range until the end of 2022, showing a moderate level of leverage during those periods. However, a significant decrease in the ratio was observed in the first quarter of 2023, possibly indicating a reduction in debt or an increase in equity. Subsequently, the ratio increased in the following periods but remained below the levels seen prior to 2023. The lowest ratio of 0.01 in the first quarter of 2020 suggests a very low level of debt relative to equity at that point in time.

Overall, the trend in the debt-to-equity ratio of Hormel Foods Corporation reflects a conservative financial approach with a moderate level of debt compared to equity, ensuring a stable capital structure during the periods under review.