Hormel Foods Corporation (HRL)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 12,163,430 | 12,073,060 | 11,822,320 | 11,549,900 | 11,648,370 | 11,728,510 | 12,039,240 | 12,352,980 | 12,319,370 | 12,285,720 | 12,065,280 | 11,856,860 | 11,848,700 | 12,187,250 | 12,473,890 | 12,537,310 | 12,664,070 | 12,477,150 | 12,257,230 | 12,250,940 |
| Property, plant and equipment | US$ in thousands | — | — | 2,164,240 | — | 2,168,530 | — | 2,163,120 | — | 2,155,520 | 2,297,740 | 2,127,820 | 2,131,480 | 2,131,480 | 274,408 | 300,860 | 2,124,400 | 2,141,150 | 2,095,580 | 2,118,070 | 2,123,600 |
| Fixed asset turnover | — | — | 5.46 | — | 5.37 | — | 5.57 | — | 5.72 | 5.35 | 5.67 | 5.56 | 5.56 | 44.41 | 41.46 | 5.90 | 5.91 | 5.95 | 5.79 | 5.77 |
January 31, 2025 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $12,163,430K ÷ $—K
= —
The fixed asset turnover ratio for Hormel Foods Corporation has shown fluctuations over the periods analyzed. The ratio indicates how efficiently the company is generating revenues from its investment in fixed assets.
From May 1, 2022, to October 31, 2023, the fixed asset turnover ratio remained relatively stable around the 5.5 to 6 level, suggesting consistent utilization of fixed assets to generate sales during this period.
However, there were significant spikes in the ratio in January 31, 2023, and April 30, 2023, with values of 41.46 and 44.41 respectively. These unusually high values could be due to one-time events, accounting adjustments, or errors in the data.
Subsequently, the ratio dropped back to the 5.5 to 5.7 range for the periods up to October 27, 2024. The absence of data for some periods indicates potential reporting or data availability issues.
Overall, while the company's fixed asset turnover ratio has shown some volatility, it is important for stakeholders to assess the reasons behind such fluctuations to understand the underlying performance and efficiency of utilizing fixed assets in generating sales for Hormel Foods Corporation.