Hormel Foods Corporation (HRL)
Return on equity (ROE)
| Jan 31, 2025 | Oct 31, 2024 | Oct 27, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 787,668 | 793,794 | 762,876 | 731,958 | 774,120 | 816,282 | 822,939 | 829,596 | 773,412 | 717,228 | 738,532 | 760,316 | 815,356 | 932,561 | 995,206 | 996,402 | 1,040,300 | 1,022,033 | 981,720 | 1,002,376 |
| Total stockholders’ equity | US$ in thousands | 8,028,340 | 7,993,420 | 7,993,420 | 7,867,120 | 7,867,120 | 7,885,990 | 7,885,990 | 7,844,110 | 7,844,110 | 7,734,880 | 7,734,880 | 7,713,260 | 7,713,260 | 7,686,510 | 7,613,900 | 7,613,900 | 7,535,280 | 7,535,280 | 7,361,680 | 7,339,400 |
| ROE | 9.81% | 9.93% | 9.54% | 9.30% | 9.84% | 10.35% | 10.44% | 10.58% | 9.86% | 9.27% | 9.55% | 9.86% | 10.57% | 12.13% | 13.07% | 13.09% | 13.81% | 13.56% | 13.34% | 13.66% |
January 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $787,668K ÷ $8,028,340K
= 9.81%
Hormel Foods Corporation's Return on Equity (ROE) has shown a gradual decline from around 13.6% in May 2022 to approximately 9.8% in January 2025. The ROE is a key profitability ratio that measures a company's ability to generate profit from its shareholders' equity.
The decreasing trend in ROE indicates that the company's efficiency in utilizing its equity to generate profits has reduced over the given period. This could be due to various factors such as declining net income, increasing shareholder equity, or a combination of both.
Investors and stakeholders often monitor ROE as it provides insights into how effectively a company is using its capital to generate returns. A declining ROE can raise concerns about the company's overall profitability and may warrant further analysis into the factors influencing the trend.
It is important for Hormel Foods Corporation to address any underlying issues affecting its ROE to improve shareholder value and profitability in the long term.