Hormel Foods Corporation (HRL)
Return on assets (ROA)
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 793,572 | 999,987 | 908,839 | 908,082 | 978,806 |
| Total assets | US$ in thousands | 13,448,800 | 13,306,900 | 12,696,300 | 9,908,280 | 8,109,000 |
| ROA | 5.90% | 7.51% | 7.16% | 9.16% | 12.07% |
October 29, 2023 calculation
ROA = Net income ÷ Total assets
= $793,572K ÷ $13,448,800K
= 5.90%
The return on assets (ROA) for Hormel Foods Corp. has shown a declining trend over the past five years. In 2019, the ROA stood at 12.07%, indicating that the company generated 12.07 cents of profit for every dollar of assets. However, there has been a gradual decrease in the ROA, with figures of 9.16% in 2020, 7.16% in 2021, and 7.51% in 2022. In the most recent period of October 29, 2023, the ROA stood at 5.90%. This declining trend suggests that the company's ability to generate profit from its assets has decreased over the years. It could indicate challenges in effectively utilizing its assets to generate earnings, which may require further analysis into the company's operational efficiency and asset management strategies.