Hormel Foods Corporation (HRL)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 7,993,420 | 7,867,120 | 7,885,990 | 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 |
| ROE | 10.07% | 9.92% | 9.72% | 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% |
October 27, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $805,038K ÷ $7,993,420K
= 10.07%
ROE, or return on equity, is a key financial ratio that measures a company's profitability by evaluating how effectively it generates earnings from its shareholders' equity. The ROE for Hormel Foods Corporation has fluctuated over the past several quarters, ranging from 9.72% to 16.09%.
The trend in Hormel Foods Corporation's ROE shows a general decrease over the earlier periods, with a decrease from 16.09% in Jan 2020 to 10.07% in Oct 2024. This declining trend may indicate a decrease in the company's ability to generate profits relative to its equity base.
A consistent ROE above 10% is generally considered favorable, indicating efficient use of shareholder equity to generate profits. Despite the recent decline, Hormel Foods Corporation has maintained ROE above this threshold, suggesting reasonable profitability.
It is essential for stakeholders to monitor Hormel Foods Corporation's ROE over time and compare it with industry benchmarks to better assess the company's financial performance and competitive position. Further analysis of the drivers behind the fluctuations in ROE, such as changes in profit margins or asset utilization, would provide more insights into the company's financial health.