Hormel Foods Corporation (HRL)
Fixed asset turnover
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,920,800 | 12,036,600 | 12,389,600 | 11,339,200 | 9,585,600 |
| Property, plant and equipment | US$ in thousands | 2,164,240 | 2,127,820 | 2,095,580 | 2,055,680 | 1,837,160 |
| Fixed asset turnover | 5.51 | 5.66 | 5.91 | 5.52 | 5.22 |
October 27, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $11,920,800K ÷ $2,164,240K
= 5.51
Hormel Foods Corporation's fixed asset turnover has displayed some fluctuations over the past five years. The trend indicates that the company has been efficient in generating revenue relative to its investment in fixed assets. The highest fixed asset turnover ratio was observed in Oct 30, 2022, at 5.91, suggesting that the company effectively utilized its fixed assets to generate sales. However, there was a slight decline in the ratio in the following year, dropping to 5.52 in Oct 31, 2021, before increasing again to 5.66 in Oct 29, 2023. In the most recent year, Oct 27, 2024, the fixed asset turnover ratio decreased to 5.51. Overall, the general trend indicates that Hormel Foods Corporation has been successful in efficiently utilizing its fixed assets to drive revenue generation, although there have been minor fluctuations in the ratio over the years.