Hormel Foods Corporation (HRL)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.36 | 0.00 | 0.36 | 0.00 | 0.36 | 0.00 | 0.30 | 0.00 | 0.30 | 0.00 | 0.31 | 0.00 | 0.00 | 0.43 | 0.00 | 0.44 | 0.00 | 0.45 |
January 31, 2025 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $8,028,340K
= 0.00
The debt-to-equity ratio of Hormel Foods Corporation has shown a fluctuating pattern over the given periods. The ratio ranged from 0.00 to 0.45, indicating periods of varying levels of leverage.
In the early periods, the company had a higher debt-to-equity ratio, which suggests a higher level of debt relative to equity. This can indicate higher financial risk as more debt obligations need to be met. However, as the ratio decreased and eventually hit 0.00 in later periods, it implies that the company either reduced its debt levels significantly or increased its equity base.
Overall, a lower debt-to-equity ratio is generally considered favorable as it signifies lower financial risk and indicates that the company is relying more on equity financing rather than debt. It shows a stronger financial position and may imply better long-term sustainability and stability for Hormel Foods Corporation.