USD 1,228 Mil as of today(2020-01-17). In depth view into Hormel Foods EBIT explanation, calculation, historical data and more" />HRL EBIT | Hormel Foods - GuruFocus.com
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Hormel Foods EBIT

: USD 1,228 Mil (TTM As of Oct. 2019)
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Hormel Foods's earnings before interest and taxes (EBIT) for the three months ended in Oct. 2019 was USD 327 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2019 was USD 1,228 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Hormel Foods's annualized ROC % for the quarter that ended in Oct. 2019 was 17.72%. Hormel Foods's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2019 was 60.91%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Hormel Foods's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Oct. 2019 was 5.74%.


Hormel Foods EBIT Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Hormel Foods Annual Data
Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19
EBIT Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,070.25 1,330.09 1,291.33 1,207.78 1,227.79

Hormel Foods Quarterly Data
Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19
EBIT Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 327.83 313.12 323.66 264.21 326.79

Hormel Foods EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then operating income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Oct. 2019 was 313.122 (Jan. 2019 ) + 323.661 (Apr. 2019 ) + 264.213 (Jul. 2019 ) + 326.789 (Oct. 2019 ) = USD 1,228 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Hormel Foods  (NYSE:HRL) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Hormel Foods's annualized ROC % for the quarter that ended in Oct. 2019 is calculated as:

ROC %(Q: Oct. 2019 )
=NOPAT/Average Invested Capital
=Operating Income*(1-Tax Rate)/( (Invested Capital (Q: Jul. 2019 ) + Invested Capital (Q: Oct. 2019 ))/2)
=1239.712 * ( 1 - 21.05% )/( (5562.808 + 5483.821)/2)
=978.752624/5523.3145
=17.72 %

where

Invested Capital(Q: Jul. 2019 )
=Book Value of Debt + Book Value of Equity - Cash
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation + Total Stockholders Equity - Cash
=250 + 0 + 5887.071 - 574.263
=5562.808

Invested Capital(Q: Oct. 2019 )
=Book Value of Debt + Book Value of Equity - Cash
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation + Total Stockholders Equity - Cash
=250 + 0 + 5921.458 - 687.637
=5483.821

Note: The Operating Income data used here is four times the quarterly (Oct. 2019) operating income data.

2. Joel Greenblatt's definition of Return on Capital:

Hormel Foods's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2019 is calculated as:

ROC (Joel Greenblatt) %(Q: Oct. 2019 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jul. 2019  Q: Oct. 2019
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/2 )
=1307.156/( ( (1516.386 + max(597.951, 0)) + (1629.111 + max(548.803, 0)) )/2 )
=1307.156/( ( 2114.337 + 2177.914 )/2 )
=1307.156/2146.1255
=60.91 %

where Working Capital is:

Working Capital(Q: Jul. 2019 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(528.583 + 1108.514 + 33.941) - (854.523 + 0 + 218.564)
=597.951

Working Capital(Q: Oct. 2019 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(574.396 + 1042.362 + 37.094) - (867.262 + 0 + 237.787)
=548.803

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Oct. 2019) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Hormel Foods's Earnings Yield (Joel Greenblatt) %for the quarter that ended in Oct. 2019 is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Oct. 2019 )
=1227.785/21400.4733
=5.74 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Hormel Foods EBIT Related Terms


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