Hormel Foods Corporation (HRL)
Return on assets (ROA)
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 805,038 | 793,572 | 999,987 | 908,839 | 908,082 |
| Total assets | US$ in thousands | 13,434,700 | 13,448,800 | 13,306,900 | 12,696,300 | 9,908,280 |
| ROA | 5.99% | 5.90% | 7.51% | 7.16% | 9.16% |
October 27, 2024 calculation
ROA = Net income ÷ Total assets
= $805,038K ÷ $13,434,700K
= 5.99%
Hormel Foods Corporation's return on assets (ROA) has shown a declining trend over the past five years. The company's ROA decreased from 9.16% in 2020 to 5.99% in 2024. This decrease indicates that the company has become less efficient in generating profit relative to its total assets. The downward trend in ROA may raise concerns about the company's overall profitability and asset utilization efficiency. Further analysis into the reasons behind the declining ROA is warranted to assess the company's operational performance and strategic decision-making.