Hormel Foods Corporation is company that is well known for helping the community and employing a lot of individuals experiencing a diversity work environment. Just like every other company their annual reports are posted online for anyone to see, mainly the investor’s and stockholders. Liquidity, profitability, and solvency ratios are 3 high demand topics that will be discussed in the below paragraphs among other information. Hormel’s total assets reported $4,244,391 in 2011. This is an increase from 2010 where the food company reported $4,053,931. This is one of the first places shareholders will look when they receive the annual report. Along with this information the report shows the previous year’s assets, dividends, and net profits. This is the information that will make shareholders become loyal and satisfied with the company.
“Net interest and investment expense (income) for the first quarter of fiscal 2012 was a net expense of $1.6 million, compared to a net expense of $6.1 million in the first quarter of fiscal 2011. The decrease was primarily due to lower interest expense resulting from reduced debt levels and interest rates compared to the prior year, as well as improved returns on the Company's rabbi trust for supplemental executive retirement plans and deferred income plans. Interest expense was $3.2 million for the first quarter compared to $6.6 million in the first quarter of fiscal 2011” (www.dailyfinance.com/2012/, 2012). In the reading of the report the Company anticipates that interest expense will approximate $12.0 to $14.0 million for fiscal 2012.
Any companies use cash equivalents. Cash equivalents are short-term investment securities. These investments have high credit quality and are higher liquid. Cash equivalents are one of the three main asset classes, along with stocks and bonds. These investments have low-risk, low-return profile.