Hormel Foods Corporation (HRL)
Days of inventory on hand (DOH)
| Jan 31, 2025 | Oct 31, 2024 | Oct 27, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.86 | 6.70 | 6.56 | 6.14 | 6.18 | 6.13 | 6.31 | 6.87 | 6.86 | 6.46 | 6.34 | 5.86 | 6.00 | 5.95 | 6.26 | 6.29 | 6.38 | 6.28 | 6.16 | 6.61 | |
| DOH | days | 53.19 | 54.44 | 55.67 | 59.49 | 59.03 | 59.54 | 57.85 | 53.11 | 53.23 | 56.53 | 57.57 | 62.26 | 60.85 | 61.39 | 58.31 | 58.02 | 57.18 | 58.10 | 59.22 | 55.21 |
January 31, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.86
= 53.19
The days of inventory on hand (DOH) for Hormel Foods Corporation have shown fluctuations over the years based on the provided data. The DOH measures the average number of days it takes for a company to sell its inventory.
Analyzing the data, we can see that the DOH ranged from a low of 53.11 days on January 31, 2024, to a high of 62.26 days on July 31, 2023. Overall, the trend suggests some level of variability in managing inventory levels.
It is important to note that a lower DOH indicates that the company is more efficiently managing its inventory, as it implies a quicker turnover of stock. Conversely, a higher DOH may suggest inefficiencies in inventory management, leading to potential risks of excess or obsolete inventory.
Tracking DOH over time helps assess the effectiveness of the company's inventory management strategies, identifying potential areas for improvement in managing inventory levels to optimize working capital utilization and enhance profitability.