Hormel Foods Corporation (HRL)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 7,844,110 | 7,734,880 | 7,713,260 | 7,686,510 | 7,613,900 | 7,535,280 | 7,361,680 | 7,339,400 | 7,100,590 | 6,972,880 | 6,788,280 | 6,700,670 | 6,550,530 | 6,425,550 | 6,267,420 | 6,162,060 | 6,091,760 | 5,921,460 | 5,887,070 | 5,897,340 |
| ROE | 10.13% | 10.26% | 11.38% | 12.15% | 12.85% | 13.27% | 13.61% | 13.08% | 13.04% | 13.03% | 12.69% | 13.25% | 13.55% | 14.13% | 14.83% | 15.02% | 16.09% | 16.53% | 16.73% | 16.88% |
January 28, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $794,716K ÷ $7,844,110K
= 10.13%
Hormel Foods Corp.'s return on equity (ROE) has displayed a consistent downward trend over the past eight quarters, declining from 13.61% in Q3 2022 to 10.13% in Q1 2024. This implies a decrease in the company's profitability and efficiency in generating returns for its shareholders during this period.
The ROE figures indicate that for every dollar of shareholders' equity invested in the company, the return has been gradually diminishing. Despite the slight uptick in Q4 2023, the overall trajectory shows a decreasing trend, with Q1 2024 recording the lowest ROE in the given period.
The decline in ROE may be attributed to various factors such as a decrease in net income, increased equity base, or inefficient utilization of assets to generate profits. Investors and stakeholders may be concerned about the company's ability to effectively utilize shareholder equity to generate returns, prompting further analysis of the company's financial performance and strategic initiatives.