Hormel Foods Corporation (HRL)
Payables turnover
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,927,900 | 11,106,700 | 11,200,600 | 10,337,000 | 8,566,050 |
| Payables | US$ in thousands | 735,604 | 771,397 | 816,604 | 793,310 | 644,609 |
| Payables turnover | 14.86 | 14.40 | 13.72 | 13.03 | 13.29 |
October 27, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $10,927,900K ÷ $735,604K
= 14.86
Hormel Foods Corporation's payables turnover ratio has displayed a consistent upward trend over the past five years, indicating the company's efficiency in managing its accounts payable. The ratio has increased from 13.29 in 2020 to 14.86 in 2024, suggesting that the company is taking fewer days to pay its suppliers, reflecting a stronger position in negotiating favorable credit terms and potentially capturing discounts. This improvement in payables turnover suggests effective working capital management and liquidity, which may enhance the company's overall financial health and operational efficiency.