Hormel Foods Corporation (HRL)
Profitability ratios
Return on sales
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 16.96% | 16.61% | 17.47% | 17.00% | 19.05% |
| Operating profit margin | 8.96% | 8.91% | 10.59% | 9.90% | 11.48% |
| Pretax margin | 8.69% | 8.43% | 10.31% | 9.93% | 11.63% |
| Net profit margin | 6.75% | 6.59% | 8.07% | 8.02% | 9.47% |
Hormel Foods Corporation's profitability ratios, as indicated by its gross profit margin, operating profit margin, pretax margin, and net profit margin, demonstrate a declining trend over the past five years. The company's gross profit margin decreased from 19.05% in 2020 to 16.96% in 2024. Similarly, the operating profit margin, pretax margin, and net profit margin also experienced a downward trajectory during the same period.
Despite the declining trend, Hormel Foods Corporation has maintained relatively stable profitability levels, with the net profit margin ranging from 6.59% to 9.47% over the past five years. This indicates that the company has been able to generate profits efficiently relative to its sales revenue, albeit at a slightly lower rate in recent years.
Overall, while there has been a decrease in profitability ratios, Hormel Foods Corporation's ability to sustain positive net profit margins suggests a degree of resilience in managing costs and generating profits amidst challenging market conditions. Continued monitoring and strategic adjustments may be necessary to enhance profitability in the future.
Return on investment
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.95% | 7.97% | 9.86% | 8.84% | 11.10% |
| Return on assets (ROA) | 5.99% | 5.90% | 7.51% | 7.16% | 9.16% |
| Return on total capital | 9.85% | 10.77% | 12.38% | 11.36% | 15.20% |
| Return on equity (ROE) | 10.07% | 10.26% | 13.27% | 13.03% | 14.13% |
Hormel Foods Corporation's profitability ratios have experienced some fluctuations over the past five years. The operating return on assets (Operating ROA) has shown a slight decrease from 11.10% in 2020 to 7.95% in 2024, indicating a decline in the company's ability to generate operating income from its assets. The return on assets (ROA) has followed a similar trend, dropping from 9.16% in 2020 to 5.99% in 2024.
On the other hand, the return on total capital has also seen a decline from 15.20% in 2020 to 9.85% in 2024. This suggests that the company's efficiency in generating returns from its total capital has decreased over the years. The return on equity (ROE) has shown a relatively stable performance, with a slight decrease from 14.13% in 2020 to 10.07% in 2024.
Overall, the profitability ratios of Hormel Foods Corporation indicate a mixed performance, with some ratios showing a decline over the years. It would be important for the company to closely monitor its operational efficiency and capital allocation to improve its profitability in the future.