Hormel Foods Corporation (HRL)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,053,983 | 1,062,346 | 1,020,186 | 978,026 | 1,025,771 | 1,073,516 | 1,091,233 | 1,108,950 | 1,041,271 | 973,592 | 999,353 | 1,018,768 | 1,091,461 | 1,241,866 | 1,313,232 | 1,314,820 | 1,360,096 | 1,327,660 | 1,280,171 | 1,308,806 |
| Total assets | US$ in thousands | 13,403,500 | 13,434,700 | 13,434,700 | 13,113,800 | 13,113,800 | 14,135,400 | 14,135,400 | 13,513,000 | 13,513,000 | 13,448,800 | 13,448,800 | 13,426,800 | 13,426,800 | 13,315,700 | 13,283,000 | 13,283,000 | 13,306,900 | 13,306,900 | 13,140,400 | 13,122,300 |
| Operating ROA | 7.86% | 7.91% | 7.59% | 7.46% | 7.82% | 7.59% | 7.72% | 8.21% | 7.71% | 7.24% | 7.43% | 7.59% | 8.13% | 9.33% | 9.89% | 9.90% | 10.22% | 9.98% | 9.74% | 9.97% |
January 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,053,983K ÷ $13,403,500K
= 7.86%
Hormel Foods Corporation's operating return on assets (operating ROA) has shown fluctuations over the periods examined. From May 1, 2022, to January 29, 2023, the operating ROA ranged between 9.97% and 9.90%, indicating relatively stable performance during this period. However, starting from January 31, 2023, the operating ROA began a downward trend, decreasing to 7.59% by July 31, 2023.
The decline continued through October 31, 2023, where the operating ROA reached 7.24%. Despite a minor increase in January 2024 to 8.21%, the operating ROA dropped again to 7.59% by October 31, 2024. The trend of fluctuating operating ROA figures continued until January 31, 2025, when it settled at 7.86%.
Overall, the operating ROA of Hormel Foods Corporation has shown a declining trend with periodic fluctuations, which may indicate challenges in efficiently generating profits from its assets over the periods analyzed. This metric is important for stakeholders as it provides insights into the company's ability to generate profits from its operational activities relative to the size of its asset base.