Hormel Foods Corporation (HRL)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	10,407,490	10,567,610	10,334,300	10,121,520	10,199,620	10,258,950	10,559,060	10,845,630	10,822,700	10,850,600	10,653,160	10,187,440	10,423,890	10,380,020	10,830,080	10,883,400	10,954,270	10,780,300	10,349,630	10,557,650
Inventory	US$ in thousands	1,516,720	1,576,300	1,576,300	1,649,650	1,649,650	1,673,500	1,673,500	1,578,190	1,578,190	1,680,410	1,680,410	1,737,860	1,737,860	1,745,790	1,730,090	1,730,090	1,716,060	1,716,060	1,679,180	1,597,000
Inventory turnover		6.86	6.70	6.56	6.14	6.18	6.13	6.31	6.87	6.86	6.46	6.34	5.86	6.00	5.95	6.26	6.29	6.38	6.28	6.16	6.61

January 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $10,407,490K ÷ $1,516,720K
= 6.86

Hormel Foods Corporation's inventory turnover ratio has shown fluctuations over the analyzed period. The inventory turnover ratio indicates how many times a company's inventory is sold and replaced over a certain period.

Based on the data provided, Hormel Foods experienced an inventory turnover ratio ranging from 5.86 to 6.87. The highest inventory turnover ratio was observed on January 31, 2024, and the lowest on July 31, 2023. This suggests that the company effectively managed its inventory during the highlighted period.

Overall, the inventory turnover ratio of Hormel Foods Corporation has been relatively stable, demonstrating efficient inventory management practices. However, monitoring this ratio over time can help identify any potential issues in inventory management, such as excess inventory levels or slow-moving stock, which may impact the company's liquidity and profitability.