Hormel Foods Corporation (HRL)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 10,927,890 | 11,001,680 | 11,088,910 | 11,138,030 | 11,106,700 | 11,102,220 | 11,096,600 | 11,165,860 | 11,200,540 | 11,384,690 | 11,300,390 | 10,862,100 | 10,337,080 | 9,375,720 | 8,850,930 | 8,661,080 | 8,565,950 | 8,601,130 | 8,494,940 | 8,399,280 |
| Inventory | US$ in thousands | 1,576,300 | 1,649,650 | 1,673,500 | 1,578,190 | 1,680,410 | 1,737,860 | 1,745,790 | 1,730,090 | 1,716,060 | 1,679,180 | 1,597,000 | 1,385,700 | 1,369,200 | 1,426,740 | 1,229,030 | 1,086,660 | 1,072,760 | 982,355 | 1,048,990 | 1,057,280 |
| Inventory turnover | 6.93 | 6.67 | 6.63 | 7.06 | 6.61 | 6.39 | 6.36 | 6.45 | 6.53 | 6.78 | 7.08 | 7.84 | 7.55 | 6.57 | 7.20 | 7.97 | 7.98 | 8.76 | 8.10 | 7.94 |
October 27, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $10,927,890K ÷ $1,576,300K
= 6.93
Hormel Foods Corporation's inventory turnover ratio has been relatively stable over the past few years, ranging between 6.36 to 8.76. The inventory turnover ratio measures how efficiently the company is managing its inventory by showing how many times a company sells and replaces its inventory during a period.
The trend indicates that Hormel Foods has been able to effectively manage its inventory levels while meeting customer demand. A higher inventory turnover ratio generally indicates that the company is selling goods quickly and efficiently.
The peak in inventory turnover ratio at 8.76 on Jan 24, 2021, suggests that Hormel Foods was able to sell and replace its inventory at a rapid rate during that period, possibly due to strong demand for its products or effective inventory management strategies in place.
Overall, the stable and relatively high inventory turnover ratios for Hormel Foods Corporation indicate effective inventory management practices, contributing to the company's operational efficiency and financial performance.