Hormel Foods Corporation (HRL)
Pretax margin
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,014,120 | 1,277,860 | 1,125,870 | 1,114,480 | 1,209,370 |
| Revenue | US$ in thousands | 12,036,600 | 12,389,600 | 11,339,200 | 9,585,600 | 9,496,530 |
| Pretax margin | 8.43% | 10.31% | 9.93% | 11.63% | 12.73% |
October 29, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,014,120K ÷ $12,036,600K
= 8.43%
The pretax margin of Hormel Foods Corp. has exhibited a downward trend over the past five years. In fiscal year 2023, the pretax margin decreased to 8.37% from 10.26% in fiscal year 2022. This represents a continuation of the declining trend observed since fiscal year 2019, where the pretax margin was recorded at 12.74%. The decrease in pretax margin may indicate challenges in controlling operating expenses and generating lower operating income relative to sales. It is essential for the company to closely monitor cost management and revenue generation strategies to improve its pretax margin in the future.