Hormel Foods Corporation (HRL)
Gross profit margin
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,999,840 | 2,164,690 | 1,927,910 | 1,825,960 | 1,884,650 |
| Revenue | US$ in thousands | 12,036,600 | 12,389,600 | 11,339,200 | 9,585,600 | 9,496,530 |
| Gross profit margin | 16.61% | 17.47% | 17.00% | 19.05% | 19.85% |
October 29, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,999,840K ÷ $12,036,600K
= 16.61%
The gross profit margin of Hormel Foods Corp. has shown a declining trend over the past five years. In October 2023, the gross profit margin decreased to 16.51% from 17.37% in October 2022. This decline is consistent with the overall trend observed in the past years, indicating potential challenges in managing production and cost of goods sold. The downward trend may raise concerns about the company's ability to effectively control production costs and maintain competitive pricing in the market. Further analysis of the company's cost structure and pricing strategies is warranted to understand the underlying factors contributing to this trend.