Hormel Foods Corporation (HRL)
Payables 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 |
| Payables | US$ in thousands | 735,604 | 675,167 | 691,498 | — | 771,397 | 703,407 | — | — | 816,604 | — | — | — | 793,310 | 654,162 | 577,365 | 558,523 | 644,609 | 537,535 | 502,133 | 490,042 |
| Payables turnover | 14.86 | 16.29 | 16.04 | — | 14.40 | 15.78 | — | — | 13.72 | — | — | — | 13.03 | 14.33 | 15.33 | 15.51 | 13.29 | 16.00 | 16.92 | 17.14 |
October 27, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $10,927,890K ÷ $735,604K
= 14.86
The payables turnover ratio for Hormel Foods Corporation has been relatively stable over the past several quarters, ranging from 13.03 to 17.14. This ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times a company pays off its average accounts payable balance over a particular period.
A higher payables turnover ratio typically suggests that the company is able to pay off its suppliers more quickly, which could indicate strong liquidity and good vendor relationships. On the other hand, a lower ratio may indicate that the company is taking longer to pay its suppliers, potentially signaling liquidity issues or strained relationships with vendors.
Hormel Foods Corporation's payables turnover ratios fall within a reasonable range, indicating that the company is effectively managing its accounts payable. It is important to monitor this ratio over time to ensure that the company maintains a healthy balance between managing cash flow and maintaining positive relationships with suppliers.