Hormel Foods Corporation (HRL)
Return on equity (ROE)
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 805,038 | 805,038 | 793,572 | 793,572 | 999,987 |
| Total stockholders’ equity | US$ in thousands | 7,993,420 | 7,993,420 | 7,734,880 | 7,734,880 | 7,535,280 |
| ROE | 10.07% | 10.07% | 10.26% | 10.26% | 13.27% |
October 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $805,038K ÷ $7,993,420K
= 10.07%
The return on equity (ROE) of Hormel Foods Corporation has shown a gradual decline over the years, starting at 13.27% as of October 31, 2022, and decreasing to 10.07% as of October 31, 2024. This decreasing trend indicates a decreasing ability of the company to generate profits from shareholders' equity. It is essential for the company to closely monitor and address the factors contributing to this decline in ROE to ensure sustainable performance and shareholder value in the long run.