Hormel Foods Corporation (HRL)
Return on assets (ROA)
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Jul 25, 2021 | Apr 25, 2021 | Jan 24, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | Oct 27, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 794,716 | 793,572 | 877,521 | 933,757 | 978,135 | 999,987 | 1,001,841 | 959,843 | 926,127 | 908,839 | 861,457 | 887,659 | 887,492 | 908,081 | 929,228 | 925,558 | 980,253 | 978,806 | 984,709 | 995,503 |
| Total assets | US$ in thousands | 13,513,000 | 13,448,800 | 13,426,800 | 13,315,700 | 13,283,000 | 13,306,900 | 13,140,400 | 13,122,300 | 12,827,000 | 12,696,300 | 12,332,200 | 9,889,000 | 9,957,930 | 9,908,280 | 9,600,470 | 8,395,180 | 8,290,110 | 8,109,000 | 7,954,580 | 7,935,740 |
| ROA | 5.88% | 5.90% | 6.54% | 7.01% | 7.36% | 7.51% | 7.62% | 7.31% | 7.22% | 7.16% | 6.99% | 8.98% | 8.91% | 9.16% | 9.68% | 11.02% | 11.82% | 12.07% | 12.38% | 12.54% |
January 28, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $794,716K ÷ $13,513,000K
= 5.88%
The return on assets (ROA) for Hormel Foods Corp. has shown a decreasing trend over the past few quarters, starting at 7.62% in Q2 2022 and declining to 5.88% in Q1 2024. This gradual decrease suggests that the company may be facing challenges in generating profits relative to its total assets or experiencing inefficiencies in asset utilization.
The ROA was relatively stable in the early quarters of the data period, hovering around the 7% mark. However, there was a significant drop from Q1 2023 to Q2 2023, with the ROA decreasing from 7.36% to 7.01%. This decline may indicate a decrease in profitability or a less effective use of assets during that period.
Overall, the fluctuating ROA values suggest that Hormel Foods Corp. may need to focus on improving its profitability and efficiency in asset management to generate better returns for its shareholders. It is important for the company to closely monitor its ROA and investigate the underlying factors contributing to the fluctuations in order to make informed strategic decisions moving forward.