Hormel Foods Corporation (HRL)
Operating return on assets (Operating ROA)
| Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,067,931 | 1,043,488 | 1,023,554 | 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 |
| Total assets | US$ in thousands | 13,434,700 | 13,113,800 | 14,135,400 | 13,513,000 | 13,448,800 | 13,426,800 | 13,315,700 | 13,283,000 | 13,306,900 | 13,140,400 | 13,122,300 | 12,827,000 | 12,696,300 | 12,332,200 | 9,889,000 | 9,957,930 | 9,908,280 | 9,600,470 | 8,395,180 | 8,290,110 |
| Operating ROA | 7.95% | 7.96% | 7.24% | 7.90% | 7.97% | 8.71% | 9.34% | 9.65% | 9.86% | 9.92% | 9.29% | 9.15% | 8.84% | 8.45% | 10.96% | 10.92% | 11.10% | 11.92% | 13.72% | 14.12% |
October 27, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,067,931K ÷ $13,434,700K
= 7.95%
Operating return on assets (ROA) is a key financial ratio that measures a company's efficiency in generating profits from its assets used in its core operations. Over the past few years, Hormel Foods Corporation's operating ROA has shown some fluctuations.
From January 2020 to April 2021, the operating ROA steadily increased from 11.92% to a peak of 14.12%, indicating that the company was effectively utilizing its assets to generate operating income. However, from April 2021 to July 2023, there was a gradual decline in the operating ROA, reaching a low of 7.24%. This decline may suggest inefficiencies in asset utilization during this period.
From July 2023 onwards, there was a slight improvement in the operating ROA, showing a trend of recovery. The ratio increased to 9.65% by January 2024 before experiencing some fluctuations between 7.90% and 9.92% in the following quarters.
In general, the operating ROA of Hormel Foods Corporation has shown some volatility over the observation period, but it remains within a relatively consistent range. A higher operating ROA typically indicates better operational efficiency and profitability, so the company should continue monitoring and improving its asset utilization to sustain and enhance its financial performance.