Hormel Foods Corporation (HRL)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 16.49% | 16.72% | 16.93% | 17.18% | 17.21% | 17.27% | 16.91% | 16.57% | 16.52% | 16.48% | 16.59% | 16.73% | 16.72% | 16.82% | 17.03% | 17.03% | 17.31% | 17.47% | 17.55% | 17.83% |
| Operating profit margin | 8.67% | 8.80% | 8.63% | 8.47% | 8.81% | 9.15% | 9.06% | 8.98% | 8.45% | 7.92% | 8.28% | 8.59% | 9.21% | 10.19% | 10.53% | 10.49% | 10.74% | 10.64% | 10.44% | 10.68% |
| Pretax margin | 8.25% | 8.38% | 8.25% | 8.14% | 8.58% | 9.03% | 8.81% | 8.61% | 8.00% | 7.39% | 7.79% | 8.23% | 8.85% | 9.84% | 10.24% | 10.26% | 10.47% | 10.35% | 10.14% | 10.30% |
| Net profit margin | 6.48% | 6.57% | 6.45% | 6.34% | 6.65% | 6.96% | 6.84% | 6.72% | 6.28% | 5.84% | 6.12% | 6.41% | 6.88% | 7.65% | 7.98% | 7.95% | 8.21% | 8.19% | 8.01% | 8.18% |
Hormel Foods Corporation's profitability ratios show varying trends over the periods provided.
- Gross Profit Margin: The gross profit margin has been consistently declining from 17.83% on May 1, 2022, to 16.49% on January 31, 2025. This indicates that the company's profitability from sales after deducting the cost of goods sold has been decreasing over time.
- Operating Profit Margin: The operating profit margin initially fluctuated but showed a clear downward trend from 10.68% on May 1, 2022, to 8.67% on January 31, 2025. This suggests that the company's profitability from its core operations has been deteriorating.
- Pretax Margin: The pretax margin also demonstrated a downward trend, decreasing from 10.30% on May 1, 2022, to 8.25% on October 27, 2024, before slightly recovering to 8.38% on October 31, 2024. This indicates that the company's profitability before accounting for taxes has been on a decline.
- Net Profit Margin: Similarly, the net profit margin declined consistently from 8.18% on May 1, 2022, to 6.48% on January 31, 2025. This highlights that Hormel Foods Corporation's profitability after all expenses, including taxes and interest, has been decreasing over the given periods.
Overall, the declining trends in profitability ratios suggest that Hormel Foods Corporation may be facing challenges in maintaining its profit margins and efficiency in generating earnings from its operations. Further analysis and investigation into the company's cost structures and revenue streams may be needed to address these profitability concerns.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 5.88% | 5.91% | 5.68% | 5.58% | 5.90% | 5.77% | 5.82% | 6.14% | 5.72% | 5.33% | 5.49% | 5.66% | 6.07% | 7.00% | 7.49% | 7.50% | 7.82% | 7.68% | 7.47% | 7.64% |
| Return on total capital | 13.44% | 13.48% | 9.63% | 12.91% | 10.00% | 14.45% | 10.60% | 14.49% | 10.38% | 12.68% | 10.04% | 13.60% | 11.14% | 16.54% | 17.72% | 12.43% | 18.47% | 12.50% | 17.69% | 12.41% |
| Return on equity (ROE) | 9.81% | 9.93% | 9.54% | 9.30% | 9.84% | 10.35% | 10.44% | 10.58% | 9.86% | 9.27% | 9.55% | 9.86% | 10.57% | 12.13% | 13.07% | 13.09% | 13.81% | 13.56% | 13.34% | 13.66% |
Hormel Foods Corporation's profitability ratios have shown some fluctuations over the periods analyzed.
- Operating Return on Assets (Operating ROA) ranged from a high of 10.22% on October 31, 2022, to a low of 7.24% on October 31, 2023. Overall, the Operating ROA has been relatively stable, indicating that the company has been efficient in generating profits from its assets.
- Return on Assets (ROA) followed a similar pattern, with a peak of 7.82% on October 31, 2022, and a trough of 5.33% on October 31, 2023. This metric reflects the company's ability to generate profits from its total assets, and the fluctuations suggest varying efficiency levels over time.
- Return on Total Capital ranged from 18.47% on October 31, 2022, to 9.63% on October 27, 2024. This metric indicates the return the company is generating for both equity and debt holders. The fluctuations may be attributed to changes in capital structure or operational performance.
- Return on Equity (ROE) ranged from a high of 13.81% on October 31, 2022, to a low of 9.27% on October 31, 2023. ROE reflects the return to shareholders and has shown some volatility, potentially impacted by factors affecting equity value or profitability.
Overall, while Hormel Foods Corporation has maintained consistent profitability ratios over time, the fluctuations in some metrics suggest varying levels of efficiency and effectiveness in utilizing assets and capital to generate returns for both investors and creditors.