Hormel Foods Corporation (HRL)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,078,653 | 1,077,811 | 1,044,169 | 1,015,577 | 1,072,272 | 1,139,586 | 1,137,934 | 1,136,663 | 1,058,788 | 980,887 | 1,013,883 | 1,048,814 | 1,122,433 | 1,271,424 | 1,349,232 | 1,355,135 | 1,391,982 | 1,353,411 | 1,301,985 | 1,319,939 |
| Long-term debt | US$ in thousands | — | — | 2,850,940 | — | 2,851,620 | — | 2,852,600 | — | 2,357,180 | — | 2,358,720 | — | 2,360,380 | — | — | 3,292,560 | — | 3,290,550 | — | 3,294,100 |
| 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 |
| Return on total capital | 13.44% | 13.48% | 9.63% | 12.91% | 10.00% | 14.45% | 10.60% | 14.49% | 10.38% | 12.68% | 10.04% | 13.60% | 11.14% | 16.54% | 17.72% | 12.43% | 18.47% | 12.50% | 17.69% | 12.41% |
January 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,078,653K ÷ ($—K + $8,028,340K)
= 13.44%
Return on total capital is a key financial ratio that indicates how effectively a company is utilizing its capital to generate profits. Looking at the data provided for Hormel Foods Corporation, we can observe fluctuations in the return on total capital over time. The ratio ranged from a low of 9.63% on October 27, 2024, to a high of 18.47% on October 31, 2022.
Overall, the return on total capital for Hormel Foods Corporation has shown some variability, indicating shifting efficiency in capital utilization. It is important for investors and analysts to closely monitor this ratio over time to assess the company's performance in generating profits relative to the total capital invested.