Hormel Foods (BSP:H1RL34) ROCE % : 10.71% (As of Jan. 2024)

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What is Hormel Foods ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Hormel Foods's annualized ROCE % for the quarter that ended in Jan. 2024 was 10.71%.

Hormel Foods ROCE % Historical Data

The historical data trend for Hormel Foods's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Hormel Foods ROCE % Chart

Hormel Foods Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

ROCE %

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18.25

16.84

11.81

11.30

9.28

Hormel Foods Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROCE %	Get a 7-Day Free Trial															10.04	9.77	7.64	9.75	10.71

Hormel Foods ROCE % Calculation

Hormel Foods's annualized ROCE % for the fiscal year that ended in Oct. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Oct. 2023 )		(A: Oct. 2022 )		(A: Oct. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Oct. 2023 )		(A: Oct. 2022 )		(A: Oct. 2023 )
	=	5495.126	/	( ( (69889.269 - 7737.74)	+	(67995.646 - 11688.108) )	/ 2 )
	=	5495.126	/	( (62151.529	+	56307.538)	/ 2 )
	=	5495.126	/	59229.5335
	=	9.28 %

Hormel Foods's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	5978.032	/	( ( (67995.646 - 11688.108)	+	(66459.553 - 11118.963) )	/ 2 )
	=	5978.032	/	( ( 56307.538	+	55340.59 )	/ 2 )
	=	5978.032	/	55824.064
	=	10.71 %

(1) Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

Hormel Foods (BSP:H1RL34) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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Hormel Foods (BSP:H1RL34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Hormel Foods Corp (BSP:H1RL34) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

HRL:USA HRL:Mexico HO7:Germany HRL:Austria

Address

1 Hormel Place, Austin, MN, USA, 55912-3680

Website

https://www.hormelfoods.com

Historically meat-focused, Hormel Foods broadened its lineup to include other protein offerings and become a branded food company. The firm sells its wares through multiple channels, including U.S. retail (64% of fiscal 2023 sales), U.S. food service (30%), and international (6%). By product, 53% of fiscal 2022 sales were from perishable food, 27% from shelf-stable, 17% from poultry, and 3% from other products. Major brands include Hormel, Spam, Jennie-O, Columbus, Applegate, Planters, and Skippy. Many of these hold the number one or two market share in their respective categories.

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