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GuruFocus has detected 1 Warning Sign with Hormel Foods Corp \$HRL.
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Hormel Foods Corp (NYSE:HRL)
Debt-to-Equity
0.06 (As of Jan. 2017)

Hormel Foods Corp's current portion of long-term debt for the quarter that ended in Jan. 2017 was \$0 Mil. Hormel Foods Corp's long-term debt for the quarter that ended in Jan. 2017 was \$250 Mil. Hormel Foods Corp's total equity for the quarter that ended in Jan. 2017 was \$4,572 Mil. Hormel Foods Corp's debt to equity for the quarter that ended in Jan. 2017 was 0.05.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

Definition

Debt to Equity measures the financial leverage a company has.

Hormel Foods Corp's Debt to Equity Ratio for the fiscal year that ended in Oct. 2016 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (0 + 250) / 4448.006 = 0.06

Hormel Foods Corp's Debt to Equity Ratio for the quarter that ended in Jan. 2017 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (0 + 250) / 4571.981 = 0.05

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

In the calculation of Debt to Equity, we use the total of Current Portion of Long-Term Debt and Long-Term Debt divided by Total Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its Return on Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return on Equity companies.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Hormel Foods Corp Annual Data

 Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16 deb2equity 0.22 0.22 0.17 0.15 0.09 0.09 0.08 0.07 0.11 0.06

Hormel Foods Corp Quarterly Data

 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 deb2equity 0.07 0.07 0.07 0.15 0.11 0.06 0.06 0.09 0.06 0.06
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