Hormel Foods Corporation (HRL)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,403,500 | 13,434,700 | 13,434,700 | 13,113,800 | 13,113,800 | 14,135,400 | 14,135,400 | 13,513,000 | 13,513,000 | 13,448,800 | 13,448,800 | 13,426,800 | 13,426,800 | 13,315,700 | 13,283,000 | 13,283,000 | 13,306,900 | 13,306,900 | 13,140,400 | 13,122,300 |
| 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 |
| Financial leverage ratio | 1.67 | 1.68 | 1.68 | 1.67 | 1.67 | 1.79 | 1.79 | 1.72 | 1.72 | 1.74 | 1.74 | 1.74 | 1.74 | 1.73 | 1.74 | 1.74 | 1.77 | 1.77 | 1.78 | 1.79 |
January 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,403,500K ÷ $8,028,340K
= 1.67
The financial leverage ratio of Hormel Foods Corporation has shown some fluctuations over the period analyzed. The ratio decreased from 1.79 as of May 1, 2022, to 1.67 as of January 31, 2025. This indicates a certain level of stability in the company's capital structure. A lower financial leverage ratio suggests that the company relies less on debt financing, which can be seen as a positive indicator of financial health and stability. However, it's essential to consider the industry norms and the company's specific circumstances when interpreting this ratio. Overall, the decreasing trend in the financial leverage ratio of Hormel Foods Corporation may indicate a conservative approach to capital structure management.