Hormel Foods Corporation (HRL)
Days of inventory on hand (DOH)
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.93 | 6.61 | 6.53 | 7.55 | 7.99 | |
| DOH | days | 52.65 | 55.22 | 55.92 | 48.35 | 45.71 |
October 27, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.93
= 52.65
Hormel Foods Corporation's days of inventory on hand (DOH) has shown a fluctuating trend over the past five years. The company's DOH ranged from 45.71 days in 2020 to 55.92 days in 2022. In the most recent year, as of October 27, 2024, the DOH decreased to 52.65 days.
A lower DOH indicates that the company is more efficient in managing its inventory levels, turning over inventory at a faster rate. Conversely, a higher DOH suggests that the company may be holding onto excess inventory, potentially tying up capital and risking obsolescence.
Overall, despite some variability, Hormel Foods Corporation has generally been able to effectively manage its inventory levels over the past five years. Monitoring this ratio going forward will be crucial to ensure efficient inventory management and optimize working capital utilization.