Hormel Foods Corporation (HRL)
Days of sales outstanding (DSO)
| Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 13.68 | 16.40 | 16.35 | 16.06 | 14.60 | 15.27 | 15.86 | 15.51 | 14.17 | 15.50 | — | 14.52 | 12.54 | 11.31 | 13.46 | 13.51 | 12.90 | 14.90 | 17.88 | 16.90 | |
| DSO | days | 26.68 | 22.26 | 22.32 | 22.73 | 25.00 | 23.90 | 23.02 | 23.53 | 25.76 | 23.54 | — | 25.13 | 29.10 | 32.26 | 27.11 | 27.02 | 28.30 | 24.50 | 20.42 | 21.60 |
October 27, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.68
= 26.68
Days Sales Outstanding (DSO) is a measure used to evaluate how many days, on average, it takes a company to collect revenue after a sale has been made. In the case of Hormel Foods Corporation, we observe fluctuations in DSO over the periods analyzed.
From Jan 26, 2020, to Jul 28, 2024, the DSO ranged from a low of 20.42 days to a high of 32.26 days. Generally, a lower DSO indicates that the company is collecting its accounts receivable more quickly, which can be a positive sign of efficiency in managing its working capital.
The DSO of Hormel Foods Corporation has shown some variability over time, with a recent trend of decreasing DSO from 29.10 days on Jul 25, 2021, to 22.26 days on Jul 28, 2024. This suggests improved efficiency in collecting receivables, which could potentially free up cash for other purposes or indicate effective credit policies.
Overall, the trend of decreasing DSO in recent periods for Hormel Foods Corporation is a positive signal that the company is managing its receivables effectively. It’s important to continue monitoring DSO to ensure that the company maintains efficient cash flow and working capital management.