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Hormel Foods Corp (NYSE:HRL)
Debt to Equity
0.07 (As of Apr. 2014)

Hormel Foods Corp's current portion of long-term debt for the quarter that ended in Apr. 2014 was $0 Mil. Hormel Foods Corp's long-term debt for the quarter that ended in Apr. 2014 was $250 Mil. Hormel Foods Corp's total equity for the quarter that ended in Apr. 2014 was $3,506 Mil. Hormel Foods Corp's debt to equity for the quarter that ended in Apr. 2014 was 0.07.

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. 2013 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(0 + 250) / 3311.04
=0.08

Hormel Foods Corp's Debt to Equity Ratio for the quarter that ended in Apr. 2014 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(0 + 250) / 3505.916
=0.07

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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

Current Portion of Long-Term Debt, Long-Term Debt, Total Equity, Return on Equity


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Hormel Foods Corp Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
deb2equity 0.270.230.190.220.220.170.150.090.090.08

Hormel Foods Corp Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
deb2equity 0.090.090.090.090.090.080.080.080.070.07
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