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Hormel Foods Gross Profit

: $1,940 Mil (TTM As of Jul. 2019)
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Hormel Foods's gross profit for the three months ended in Jul. 2019 was $433 Mil. Hormel Foods's gross profit for the trailing twelve months (TTM) ended in Jul. 2019 was $1,940 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Hormel Foods's gross profit for the three months ended in Jul. 2019 was $433 Mil. Hormel Foods's Revenue for the three months ended in Jul. 2019 was $2,291 Mil. Therefore, Hormel Foods's Gross Margin % for the quarter that ended in Jul. 2019 was 18.92%.

Hormel Foods had a gross margin of 18.92% for the quarter that ended in Jul. 2019 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin % of Hormel Foods was 22.66%. The lowest was 16.14%. And the median was 17.03%.


Hormel Foods Gross Profit 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
Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,564.98 1,808.58 2,158.18 2,003.16 1,995.43

Hormel Foods Quarterly Data
Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19
Gross Profit 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 455.05 549.29 488.33 469.15 433.44

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Hormel Foods Gross Profit Distribution

* The bar in red indicates where Hormel Foods's Gross Profit falls into.



Hormel Foods Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Hormel Foods's Gross Profit for the fiscal year that ended in Oct. 2018 is calculated as

Gross Profit (A: Oct. 2018 )=Revenue - Cost of Goods Sold
=9545.7 - 7550.267
=1,995

Hormel Foods's Gross Profit for the quarter that ended in Jul. 2019 is calculated as

Gross Profit (Q: Jul. 2019 )=Revenue - Cost of Goods Sold
=2290.705 - 1857.263
=433

Gross Profit for the trailing twelve months (TTM) ended in Jul. 2019 was 549.288 (Oct. 2018 ) + 488.334 (Jan. 2019 ) + 469.149 (Apr. 2019 ) + 433.442 (Jul. 2019 ) = $1,940 Mil.

Gross Profit is the numerator in the calculation of Gross Margin:

Hormel Foods's Gross Margin % for the quarter that ended in Jul. 2019 is calculated as

Gross Margin % (Q: Jul. 2019 )=Gross Profit (Q: Jul. 2019 ) / Revenue (Q: Jul. 2019 )
=(Revenue - Cost of Goods Sold) / Revenue
=433 / 2290.705
=18.92 %

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

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Hormel Foods  (NYSE:HRL) Gross Profit Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Hormel Foods had a gross margin of 18.92% for the quarter that ended in Jul. 2019 => No sustainable competitive advantage


Hormel Foods Gross Profit Related Terms


Hormel Foods Gross Profit Headlines

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