Hormel Foods Corporation (HRL)
Financial leverage ratio
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,434,700 | 13,448,800 | 13,306,900 | 12,696,300 | 9,908,280 |
| Total stockholders’ equity | US$ in thousands | 7,993,420 | 7,734,880 | 7,535,280 | 6,972,880 | 6,425,550 |
| Financial leverage ratio | 1.68 | 1.74 | 1.77 | 1.82 | 1.54 |
October 27, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,434,700K ÷ $7,993,420K
= 1.68
The financial leverage ratio of Hormel Foods Corporation has seen a fluctuating trend over the past five years. It decreased from 1.82 in October 2021 to 1.54 in October 2020, indicating a reduction in the company's reliance on debt to finance its operations during that period. However, the ratio then increased to 1.77 in October 2022, showing a possible shift towards higher debt usage.
Subsequently, the financial leverage ratio continued to rise to 1.74 in October 2023, suggesting a sustained increase in leveraging. However, in the most recent period of October 2024, the ratio decreased slightly to 1.68, indicating a potential reduction in debt relative to equity.
Overall, the varying levels of the financial leverage ratio signal changes in Hormel Foods' capital structure and financial risk over the years. It is essential for stakeholders to monitor these fluctuations to assess the company's ability to meet its financial obligations and evaluate its overall financial health.