Hormel Foods Corporation (HRL)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 8,109,000 | 7,954,580 | 7,935,740 |
| 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 |
| Financial leverage ratio | 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 | 1.37 | 1.35 | 1.35 |
January 28, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,513,000K ÷ $7,844,110K
= 1.72
Hormel Foods Corp.'s financial leverage ratio has exhibited relatively stable trends over the past eight quarters, ranging from 1.72 to 1.79. The financial leverage ratio measures the extent to which a company relies on debt to finance its operations, with higher ratios indicating higher levels of debt compared to equity.
With Hormel Foods Corp.'s financial leverage ratio fluctuating around the range of 1.72 to 1.79, it suggests that the company maintains a moderate level of leverage in its capital structure. This indicates that Hormel Foods Corp. has a balanced mix of debt and equity financing, with a slightly higher reliance on debt.
The slight fluctuations in the financial leverage ratio over the quarters may reflect varying levels of debt taken on by the company for investment or operational purposes. Despite the minor variations, the overall stability of the financial leverage ratio within a narrow range implies that Hormel Foods Corp. has been managing its debt levels effectively, maintaining a prudent approach to capital structure management.
It is essential for investors and analysts to continue monitoring Hormel Foods Corp.'s financial leverage ratio along with other financial metrics to assess the company's financial health and risk profile accurately.