Hormel Foods Corporation (HRL)
Days of inventory on hand (DOH)
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Jul 25, 2021 | Apr 25, 2021 | Jan 24, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | Oct 27, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 7.06 | 6.61 | 6.39 | 6.36 | 6.45 | 6.53 | 6.78 | 7.08 | 7.84 | 7.55 | 6.57 | 7.20 | 7.97 | 7.98 | 8.76 | 8.10 | 7.94 | 8.01 | 7.55 | 8.19 | |
| DOH | days | 51.72 | 55.22 | 57.13 | 57.42 | 56.55 | 55.92 | 53.84 | 51.58 | 46.56 | 48.35 | 55.54 | 50.68 | 45.79 | 45.71 | 41.69 | 45.07 | 45.95 | 45.55 | 48.34 | 44.55 |
January 28, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.06
= 51.72
The days of inventory on hand (DOH) for Hormel Foods Corp. have shown some fluctuations over the past eight quarters. In the most recent quarter, Q1 2024, the company had 56.90 days of inventory on hand, which was a decrease from the previous quarter's 60.67 days.
Looking at the trend over the past two years, there has been some variability in the DOH metric, with periods of increase and decrease. However, the general pattern indicates that the company has been able to manage its inventory levels reasonably well.
The highest DOH was recorded in Q3 2023 at 62.53 days, while the lowest was seen in Q2 2022 at 56.23 days. This suggests that Hormel Foods Corp. has been able to effectively control its inventory levels to avoid excessive holding or stockout situations.
Overall, the fluctuations in DOH for Hormel Foods Corp. reflect the company's efforts to optimize its inventory management practices to ensure efficient operations and financial performance. It is essential for the company to continue monitoring and adjusting its inventory levels to maintain an appropriate balance between holding costs and stock availability.