Hormel Foods Corporation (HRL)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 9,481,890 | 9,505,080 | 9,568,300 |
| Property, plant and equipment | US$ in thousands | 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 | 1,629,110 | 1,516,390 | 1,494,570 |
| Fixed asset turnover | 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 | 5.82 | 6.27 | 6.40 |
January 28, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $12,062,240K ÷ $2,155,520K
= 5.60
Hormel Foods Corp.'s fixed asset turnover has shown relatively stable performance over the last eight quarters, ranging from a low of 5.59 in Q4 2023 to a high of 5.96 in Q3 2022. This indicates that the company is generating approximately $5.59 to $5.96 in revenue for every dollar invested in fixed assets during these quarters.
Overall, the fixed asset turnover ratio has remained consistently high, with values consistently above 5.5. This suggests that Hormel Foods Corp. is effectively utilizing its fixed assets to generate sales, which indicates operational efficiency and effective asset management.
The slight fluctuations in the fixed asset turnover ratio from quarter to quarter may be influenced by various factors such as changes in production volumes, pricing strategies, or asset utilization efficiency. However, the general trend of maintaining a high fixed asset turnover ratio indicates that Hormel Foods Corp. is efficiently generating revenue from its fixed assets throughout the analyzed periods.