Hormel Foods Corporation (HRL)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 787,668 | 793,794 | 762,876 | 731,958 | 774,120 | 816,282 | 822,939 | 829,596 | 773,412 | 717,228 | 738,532 | 760,316 | 815,356 | 932,561 | 995,206 | 996,402 | 1,040,300 | 1,022,033 | 981,720 | 1,002,376 |
| 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 |
| 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% |
January 31, 2025 calculation
ROA = Net income (ttm) ÷ Total assets
= $787,668K ÷ $13,403,500K
= 5.88%
Hormel Foods Corporation's return on assets (ROA) has shown some fluctuation over the period covered in the data. It started at 7.64% on May 1, 2022, but gradually declined to 5.66% by July 31, 2023. This indicates a decrease in the company's ability to generate profits from its assets during this period.
However, there was a slight improvement in ROA to 6.14% by January 31, 2024, before dropping again to 5.77% by April 30, 2024. The ROA then fluctuated between 5.58% and 5.91% in the subsequent periods up to January 31, 2025.
The decreasing trend in ROA from 7.64% to 5.88% over the period suggests that Hormel Foods Corporation may be facing challenges in efficiently utilizing its assets to generate profits. It would be important for the company to analyze the factors contributing to this decline and implement strategies to improve its ROA in the future.