Hormel Foods Corporation (HRL)

Solvency ratios

	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
Debt-to-assets ratio	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	0.03	0.03	0.03
Debt-to-capital ratio	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	0.04	0.04	0.04
Debt-to-equity ratio	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	0.04	0.04	0.04
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

The solvency ratios of Hormel Foods Corp. reflect the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has remained consistent at 0.25 across the quarters, indicating that 25% of the company's assets are financed by debt.

Similarly, the debt-to-capital ratio has been stable at 0.30, indicating that 30% of the company's capital structure is comprised of debt. The debt-to-equity ratio has shown a slight increase from 0.42 in Q1 2023 to 0.45 in Q2 2022, suggesting that the company's reliance on equity financing has decreased slightly over time.

The financial leverage ratio has fluctuated between 1.72 and 1.79, showing a slightly increasing trend over the quarters. This ratio signifies the company's level of debt relative to its equity and indicates a moderate level of financial risk.

Overall, Hormel Foods Corp. maintains a stable solvency position with a balanced mix of debt and equity in its capital structure. However, the increasing trend in the financial leverage ratio warrants monitoring to ensure the company's long-term financial health and stability.

Coverage ratios

	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
Interest coverage	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	67.93	57.66	46.38

The interest coverage ratio of Hormel Foods Corp. has shown a consistent and stable trend over the past eight quarters. The ratio has been consistently above 14, indicating that the company's operating income is sufficiently high to cover its interest expenses.

With the ratio ranging from 14.93 to 21.55 during the analyzed period, the company has demonstrated a strong ability to service its debt obligations. The upward trend from Q1 2023 to Q2 2023 followed by relatively stable levels suggests that Hormel Foods Corp. has been effectively managing its interest expenses, which is a positive sign for its financial health.

Overall, based on the interest coverage data provided, Hormel Foods Corp. appears to be in a favorable position in terms of its ability to meet its interest payments using its operating income.