Name: Return on Equity (ROE)

Definition: ROE shows how much profit the company earns for its shareholders based on their invested equity. It’s one of the most watched profitability ratios. A consistently high ROE signals strong management and efficient use of shareholder capital. But artificially high ROE may sometimes be boosted by excessive debt.

Interpretation:
• In '2021', HRL's return on equity was 13.0%, measuring profitability for shareholders. Industry average for Meat/Poultry/Fish in '2021' stood at 5.2%.
• In '2022', HRL's return on equity was 13.8%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Meat/Poultry/Fish in '2022' stood at 4.6%. Industry average declined by 0.6% from previous year.
• In '2023', HRL's return on equity was 10.4%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Meat/Poultry/Fish in '2023' stood at -2.2%. Industry average declined by 6.8% from previous year.
• In '2024', HRL's return on equity was 10.2%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Meat/Poultry/Fish in '2024' stood at -14.3%. Industry average declined by 12.1% from previous year.
Overall, HRL's return on equity has consistently declined during the past 4 years.

Formula: ROE = Net Income / Shareholders' Equity

Good Range: 10%-20% desirable for many industries.