Hormel Foods Corporation (HRL)
Inventory turnover
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 9,898,660 | 10,927,900 | 10,110,200 | 11,106,700 | 10,294,100 |
| Inventory | US$ in thousands | 1,576,300 | 1,576,300 | 1,680,410 | 1,680,410 | 1,716,060 |
| Inventory turnover | 6.28 | 6.93 | 6.02 | 6.61 | 6.00 |
October 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $9,898,660K ÷ $1,576,300K
= 6.28
Hormel Foods Corporation's inventory turnover has shown a consistent and upward trend over the past few years. The inventory turnover ratio increased from 6.00 in October 31, 2022, to 6.61 in October 29, 2023, indicating that the company is managing its inventory more efficiently. However, there was a slight dip in the ratio to 6.02 in October 31, 2023, before rising again to 6.93 in October 27, 2024. This demonstrates that Hormel Foods Corporation is effectively selling and replenishing its inventory within relatively shorter periods, which is a positive sign of operational efficiency. The latest inventory turnover ratio of 6.28 as of October 31, 2024, suggests that the company continues to effectively manage its inventory levels. Overall, the trend in inventory turnover indicates that Hormel Foods Corporation is proficient in controlling its inventory and converting it into sales.