Hormel Foods Corporation (HRL)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 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 | 8,109,000 | 7,954,580 | 7,935,740 |
| Operating ROA | 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% | 14.75% | 15.02% | 15.06% |
January 28, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,067,032K ÷ $13,513,000K
= 7.90%
The operating return on assets (operating ROA) of Hormel Foods Corp. has shown a gradual decline over the past eight quarters, starting at 9.04% in Q2 2022 and reaching 7.79% in Q1 2024. This downward trend suggests that the company's operating profit generated from its assets has been decreasing over time.
The peak operating ROA of 9.69% was observed in Q4 2022, followed by a steady decrease in the subsequent quarters. This indicates a potential decrease in the efficiency with which Hormel Foods is utilizing its assets to generate operating income.
Overall, the declining trend in operating ROA may raise concerns about the company's operational effectiveness and could indicate challenges in optimizing its asset utilization to drive profitability. Further analysis of the company's operational efficiency and asset management strategies may be warranted to address this trend and improve performance.