Hormel Foods Corporation (HRL)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,434,700 | 13,113,800 | 14,135,400 | 13,513,000 | 13,448,800 | 13,426,800 | 13,315,700 | 13,283,000 | 13,306,900 | 13,140,400 | 13,122,300 | 12,827,000 | 12,696,300 | 12,332,200 | 9,889,000 | 9,957,930 | 9,908,280 | 9,600,470 | 8,395,180 | 8,290,110 |
| 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 |
| Financial leverage ratio | 1.68 | 1.67 | 1.79 | 1.72 | 1.74 | 1.74 | 1.73 | 1.74 | 1.77 | 1.78 | 1.79 | 1.81 | 1.82 | 1.82 | 1.48 | 1.52 | 1.54 | 1.53 | 1.36 | 1.36 |
October 27, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,434,700K ÷ $7,993,420K
= 1.68
Hormel Foods Corporation's financial leverage ratio has exhibited some fluctuations over the past several quarters, ranging from 1.36 to 1.82. The financial leverage ratio measures the extent to which a company relies on debt to finance its operations. A higher ratio indicates a higher level of debt relative to equity in the company's capital structure.
The trend in Hormel Foods Corporation's financial leverage ratio shows some variability but generally hovers around the 1.7 to 1.8 range. A ratio above 1 suggests that the company has more debt than equity in its capital structure, indicating a higher level of financial risk. It's worth noting that the financial leverage ratio has shown some variability, with a peak of 1.82 in January 2022 and a trough of 1.36 in April 2020.
Investors and creditors typically monitor the financial leverage ratio to assess a company's ability to meet its debt obligations and manage financial risks. Hormel Foods Corporation's financial leverage ratio trend should be analyzed in conjunction with other financial ratios and factors to gain a comprehensive understanding of the company's financial health and risk profile.