Hormel Foods Corporation (HRL)
Operating profit margin
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Jul 25, 2021 | Apr 25, 2021 | Jan 24, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | Oct 27, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,067,032 | 1,072,046 | 1,169,173 | 1,243,454 | 1,282,384 | 1,312,607 | 1,303,125 | 1,219,569 | 1,174,256 | 1,122,599 | 1,041,614 | 1,083,706 | 1,087,751 | 1,100,221 | 1,144,520 | 1,151,601 | 1,170,505 | 1,196,265 | 1,194,845 | 1,194,878 |
| Revenue (ttm) | US$ in thousands | 12,062,240 | 12,038,800 | 12,123,670 | 12,197,540 | 12,320,120 | 12,393,100 | 12,565,850 | 12,399,020 | 11,915,950 | 11,339,360 | 10,322,430 | 9,846,190 | 9,666,330 | 9,595,680 | 9,677,090 | 9,588,850 | 9,509,010 | 9,481,890 | 9,505,080 | 9,568,300 |
| Operating profit margin | 8.85% | 8.90% | 9.64% | 10.19% | 10.41% | 10.59% | 10.37% | 9.84% | 9.85% | 9.90% | 10.09% | 11.01% | 11.25% | 11.47% | 11.83% | 12.01% | 12.31% | 12.62% | 12.57% | 12.49% |
January 28, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $1,067,032K ÷ $12,062,240K
= 8.85%
Hormel Foods Corp.'s operating profit margin has been relatively stable over the past eight quarters, ranging between 8.67% and 10.32%. The company's operating profit margin reached its highest level in Q1 2023 at 10.32% and has since shown a slight decline. This indicates that the company is generating approximately 8.67% to 10.32% of profit from its core operations for every dollar of revenue generated.
The gradual decrease in the operating profit margin from Q1 2023 to Q1 2024 suggests that Hormel Foods Corp. may be facing challenges in controlling costs or optimizing its operational efficiency. However, it is essential to conduct a deeper analysis to identify the specific factors contributing to this trend and assess the company's overall financial performance comprehensively.