Hormel Foods Corporation (HRL)
Net profit margin
| Jan 31, 2025 | Oct 31, 2024 | Oct 27, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 787,668 | 793,794 | 762,876 | 731,958 | 774,120 | 816,282 | 822,939 | 829,596 | 773,412 | 717,228 | 738,532 | 760,316 | 815,356 | 932,561 | 995,206 | 996,402 | 1,040,300 | 1,022,033 | 981,720 | 1,002,376 |
| Revenue (ttm) | US$ in thousands | 12,163,430 | 12,073,060 | 11,822,320 | 11,549,900 | 11,648,370 | 11,728,510 | 12,039,240 | 12,352,980 | 12,319,370 | 12,285,720 | 12,065,280 | 11,856,860 | 11,848,700 | 12,187,250 | 12,473,890 | 12,537,310 | 12,664,070 | 12,477,150 | 12,257,230 | 12,250,940 |
| Net profit margin | 6.48% | 6.57% | 6.45% | 6.34% | 6.65% | 6.96% | 6.84% | 6.72% | 6.28% | 5.84% | 6.12% | 6.41% | 6.88% | 7.65% | 7.98% | 7.95% | 8.21% | 8.19% | 8.01% | 8.18% |
January 31, 2025 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $787,668K ÷ $12,163,430K
= 6.48%
Net profit margin is a key financial metric that indicates the profitability of a company by measuring the percentage of each dollar of revenue that translates into profit after all expenses are deducted. In the case of Hormel Foods Corporation, the net profit margin has shown some fluctuations over the past few quarters.
As of January 31, 2025, Hormel Foods Corporation's net profit margin stands at 6.48%. This means that for every dollar of revenue generated, the company is retaining $0.0648 as net profit.
Looking at the trend over the previous quarters, we observe slight fluctuations in the net profit margin. The margin was relatively stable in the range of 8% to 7% throughout May 2022 to April 2023. However, the net profit margin started to decline from July 2023 onwards, dropping to 6.48% as of January 31, 2025.
The decreasing trend in the net profit margin could indicate various factors impacting profitability, such as increasing costs, pricing pressures, or changes in sales volume. It would be important for stakeholders to further investigate the underlying reasons for this decline in profitability to assess the company's financial health and sustainability.