Hormel Foods Corporation (HRL)
Return on assets (ROA)
| Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 805,038 | 780,777 | 766,755 | 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 |
| Total assets | US$ in thousands | 13,434,700 | 13,113,800 | 14,135,400 | 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 |
| ROA | 5.99% | 5.95% | 5.42% | 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% |
October 27, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $805,038K ÷ $13,434,700K
= 5.99%
Hormel Foods Corporation's return on assets (ROA) has shown a general decreasing trend over the past few quarters, from 11.82% in January 2020 to 5.99% in October 2024. The ROA measures the company's efficiency in utilizing its assets to generate profits, and a higher ROA indicates better asset utilization.
The decline in ROA could potentially signal challenges in effectively managing the company's assets to generate profits. However, it is important to note that the ROA figures were relatively stable around the 7-8% range from January 2023 to July 2023 before experiencing a more pronounced decrease in the most recent quarters.
Further investigation into the company's operational efficiency, profitability, and asset management strategies may be necessary to understand the factors contributing to the decline in ROA. It would be essential for stakeholders and investors to monitor future ROA trends to assess the company's financial health and performance.