Hormel Foods Corporation (HRL)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 7,993,420 | 7,734,880 | 7,535,280 | 6,972,880 | 6,425,550 |
| ROE | 10.07% | 10.26% | 13.27% | 13.03% | 14.13% |
October 27, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $805,038K ÷ $7,993,420K
= 10.07%
Hormel Foods Corporation's return on equity (ROE) has shown a declining trend over the past five years, as indicated by the decreasing ROE figures from 14.13% in October 2020 to 10.07% in October 2024. This downward trend suggests that the company's ability to generate profit from its shareholders' equity has weakened over time.
Although the ROE figures have fluctuated slightly between 10.07% and 14.13% during this period, they have generally remained within a narrow range. This stability may indicate that Hormel Foods Corporation has managed to maintain a consistent level of profitability relative to its shareholders' equity, despite the overall decline in ROE.
It is important for investors and stakeholders to monitor these ROE trends closely, as a declining ROE may suggest inefficiencies in the company's operations or challenges in generating adequate returns on its investments. Further analysis of Hormel Foods Corporation's financial performance and operational strategies is recommended to gain a deeper understanding of the factors influencing its ROE dynamics.