Hormel Foods Corporation (HRL)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.21 | 0.22 | 0.20 | 0.17 | 0.18 | 0.18 | 0.25 | 0.25 | 0.25 | 0.25 | 0.25 | 0.26 | 0.26 | 0.27 | 0.11 | 0.10 | 0.11 | 0.11 | 0.01 | 0.04 |
| Debt-to-capital ratio | 0.26 | 0.27 | 0.27 | 0.23 | 0.23 | 0.23 | 0.30 | 0.30 | 0.30 | 0.31 | 0.31 | 0.32 | 0.32 | 0.33 | 0.13 | 0.14 | 0.14 | 0.14 | 0.01 | 0.05 |
| Debt-to-equity ratio | 0.36 | 0.36 | 0.36 | 0.30 | 0.30 | 0.31 | 0.43 | 0.43 | 0.44 | 0.45 | 0.45 | 0.47 | 0.48 | 0.49 | 0.16 | 0.16 | 0.16 | 0.17 | 0.01 | 0.05 |
| 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 |
Hormel Foods Corporation's solvency ratios paint a positive picture of the company's financial health over the past several quarters. The debt-to-assets ratio has been relatively stable, ranging from 0.17 to 0.25. This indicates that the company's level of debt in relation to its total assets has remained within a reasonable range, suggesting a prudent approach to managing its liabilities.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have also shown consistency, with values hovering around 0.23 to 0.31 and 0.30 to 0.47, respectively. These ratios reflect the proportion of debt in the company's capital structure and its impact on equity, with Hormel Foods maintaining a balanced level of leverage.
The financial leverage ratio, which measures the overall leverage of the company, has been relatively stable between 1.67 to 1.82. This indicates that Hormel Foods has been able to effectively utilize debt to finance its operations without becoming overly leveraged.
Overall, the solvency ratios suggest that Hormel Foods Corporation has maintained a healthy balance between debt and equity in its capital structure, indicating a solid financial position and the ability to meet its financial obligations in the long term.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 13.61 | 13.42 | 13.82 | 14.88 | 14.82 | 16.49 | 18.28 | 19.88 | 21.44 | 22.04 | 21.97 | 24.28 | 27.00 | 30.24 | 37.90 | 43.82 | 53.90 | 73.96 | 87.78 | 77.94 |
The interest coverage ratio for Hormel Foods Corporation has shown a consistently strong performance over the past few years, indicating the company's ability to comfortably meet its interest payment obligations. The ratio has been steadily increasing from 13.61 in Oct 2024 to 87.78 in Jul 2020, reflecting a robust ability to cover interest expenses from operating profits.
The trend indicates that Hormel Foods Corporation has maintained a healthy level of earnings relative to its interest expenses, with the ratio peaking at 87.78 in Jul 2020. This suggests that the company has ample earnings to cover interest payments, providing a buffer against financial risks associated with debt obligations.
Overall, the upward trajectory of the interest coverage ratio for Hormel Foods Corporation signals financial stability and the ability to manage debt effectively, which is a positive indicator for investors and creditors.