Hormel Foods Corporation (HRL)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,101,068 | 1,071,205 | 1,060,618 | 1,091,916 | 1,087,526 | 1,197,879 | 1,277,313 | 1,316,591 | 1,340,379 | 1,333,216 | 1,243,460 | 1,207,384 | 1,169,176 | 1,088,203 | 1,137,365 | 1,127,081 | 1,135,542 | 1,175,434 | 1,174,723 | 1,208,073 |
| Long-term debt | US$ in thousands | 2,850,940 | 2,851,620 | 2,852,600 | 2,357,180 | 2,358,720 | 2,360,380 | 3,294,440 | 3,292,560 | 3,290,550 | 3,294,290 | 3,294,100 | 3,309,150 | 3,315,150 | 3,316,260 | 1,040,490 | 1,043,050 | 1,044,940 | 1,046,820 | 56,861 | 308,972 |
| 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 |
| Return on total capital | 10.15% | 9.99% | 9.88% | 10.70% | 10.77% | 11.89% | 11.63% | 12.07% | 12.38% | 12.51% | 11.69% | 11.60% | 11.36% | 10.77% | 14.69% | 14.84% | 15.20% | 16.07% | 18.89% | 18.87% |
October 27, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,101,068K ÷ ($2,850,940K + $7,993,420K)
= 10.15%
The return on total capital for Hormel Foods Corporation has shown a generally positive trend over the past few years, indicating the company's ability to generate earnings relative to the capital invested in its operations. The latest return on total capital as of October 27, 2024, is 10.15%, which is slightly lower compared to the previous quarter's figure of 9.99%.
Looking back over the past two years, the return on total capital has ranged from a low of 9.88% to a high of 18.89%. Despite some fluctuations, the return on total capital has generally remained above 10%, suggesting that Hormel Foods Corporation has been effectively utilizing its capital to generate profits.
The peak return on total capital of 18.89% in April 2020 may indicate a particularly strong performance during that period, which could have been influenced by various factors such as efficient cost management, revenue growth, or improvements in operational efficiency.
Overall, the return on total capital for Hormel Foods Corporation reflects a solid financial performance, with a consistent ability to generate returns for its investors relative to the capital employed in the business.