Hormel Foods Corporation (HRL)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | — | — | 13.62 | — | 16.02 | — | 16.45 | — | 16.40 | — | 14.63 | — | 14.93 | — | — | 15.78 | — | 14.26 | — | — | |
| DSO | days | — | — | 26.81 | — | 22.78 | — | 22.19 | — | 22.25 | — | 24.95 | — | 24.45 | — | — | 23.13 | — | 25.59 | — | — |
January 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
The days of sales outstanding (DSO) for Hormel Foods Corporation fluctuated over the period under review. DSO is a measure of how long it takes for a company to collect payments from its customers.
From October 30, 2022, to January 29, 2023, the DSO decreased from 25.59 days to 23.13 days, indicating an improvement in the company's collection efficiency. This trend continued as the DSO further decreased to 22.25 days by January 28, 2024.
However, there were fluctuations in the DSO from April 28, 2024, to October 27, 2024, where it increased to 26.81 days before reducing back to 22.78 days by July 28, 2024. The DSO then remained stable at around 22 days until the end of the data period on January 31, 2025.
Overall, the decreasing trend in DSO until January 28, 2024, suggests that Hormel Foods Corporation was managing its accounts receivable effectively. However, the subsequent fluctuations in DSO indicate some variability in the company's ability to collect payments efficiently, which may warrant further investigation to understand the underlying factors influencing the DSO metric.