Hormel Foods Corporation (HRL)
Inventory turnover
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 11,106,700 | 11,200,600 | 10,337,000 | 8,566,050 | 8,351,850 |
| Inventory | US$ in thousands | 1,680,410 | 1,716,060 | 1,369,200 | 1,072,760 | 1,042,360 |
| Inventory turnover | 6.61 | 6.53 | 7.55 | 7.99 | 8.01 |
October 29, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $11,106,700K ÷ $1,680,410K
= 6.61
The inventory turnover ratio of Hormel Foods Corp. has fluctuated over the past five years. The ratio was 6.02 in October 2023, 6.00 in October 2022, 6.91 in October 2021, 7.25 in October 2020, and 7.30 in October 2019. This indicates that, on average, the company's inventory was turned over 6.70 times in the recent five-year period.
A higher inventory turnover ratio generally suggests that the company is efficiently managing its inventory, as it is selling and replenishing stock more frequently. However, a declining trend in the ratio may indicate potential overstocking or slowing sales. Therefore, while Hormel Foods Corp. has experienced a slight decrease in its inventory turnover over the last five years, its turnover rate remains relatively healthy and efficient.