Hormel Foods Corporation (HRL)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 11,880,780 | 11,922,100 | 11,968,590 | 12,062,240 | 12,038,800 | 12,123,670 | 12,197,540 | 12,320,120 | 12,393,100 | 12,565,850 | 12,399,020 | 11,915,950 | 11,339,360 | 10,322,430 | 9,846,190 | 9,666,330 | 9,595,680 | 9,677,090 | 9,588,850 | 9,509,010 |
| Property, plant and equipment | US$ in thousands | 2,164,240 | 2,168,530 | 2,163,120 | 2,155,520 | 2,127,820 | 2,131,480 | 2,119,150 | 2,124,400 | 2,095,580 | 2,118,070 | 2,123,600 | 2,101,840 | 2,055,680 | 2,067,140 | 1,897,490 | 1,898,260 | 1,837,160 | 1,736,960 | 1,685,110 | 1,628,100 |
| Fixed asset turnover | 5.49 | 5.50 | 5.53 | 5.60 | 5.66 | 5.69 | 5.76 | 5.80 | 5.91 | 5.93 | 5.84 | 5.67 | 5.52 | 4.99 | 5.19 | 5.09 | 5.22 | 5.57 | 5.69 | 5.84 |
October 27, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $11,880,780K ÷ $2,164,240K
= 5.49
Fixed asset turnover is a financial ratio that measures a company's ability to generate net sales revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.
Analyzing Hormel Foods Corporation's fixed asset turnover over the past few years, we observe a generally stable and strong performance. The fixed asset turnover ratio has ranged from 4.99 to 5.93 during the period under consideration.
The trend shows a gradual increase in the ratio from 4.99 in July 2021 to 5.93 in July 2024, indicating an improvement in the company's efficiency in utilizing its fixed assets to generate sales revenue. However, there are slight fluctuations in the ratio over the quarters, which may be influenced by seasonal factors or changes in the business environment.
Overall, Hormel Foods Corporation has maintained a consistently high fixed asset turnover ratio, reflecting its efficient management of fixed assets to drive sales growth. This suggests that the company is making effective use of its investments in fixed assets to generate revenue, which is a positive indicator of operational efficiency and financial performance.