Hormel Foods Corporation (HRL)
Net profit margin
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 793,572 | 999,987 | 908,839 | 908,082 | 978,806 |
| Revenue | US$ in thousands | 12,036,600 | 12,389,600 | 11,339,200 | 9,585,600 | 9,496,530 |
| Net profit margin | 6.59% | 8.07% | 8.02% | 9.47% | 10.31% |
October 29, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $793,572K ÷ $12,036,600K
= 6.59%
Based on the data provided, Hormel Foods Corp.'s net profit margin has shown a declining trend over the past five years. The net profit margin decreased from 10.31% in 2019 to 6.55% in 2023. This indicates that the company's net income as a percentage of its total revenue has decreased over this period. A declining net profit margin may be a cause for concern as it could signal challenges in managing costs, pricing pressures, or declining operational efficiency. Further analysis of the company's cost structure, pricing strategy, and operational efficiency would be necessary to understand the factors contributing to this trend and to assess the company's overall financial performance.