Hormel Foods Corporation (HRL)
Receivables turnover
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,920,800 | 12,036,600 | 12,389,600 | 11,339,200 | 9,585,600 |
| Receivables | US$ in thousands | 868,288 | 824,633 | 874,770 | 904,012 | 743,868 |
| Receivables turnover | 13.73 | 14.60 | 14.16 | 12.54 | 12.89 |
October 27, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $11,920,800K ÷ $868,288K
= 13.73
The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable during a specific period. A higher receivables turnover ratio indicates better efficiency in collecting outstanding receivables.
Analyzing the trend of Hormel Foods Corporation's receivables turnover over the past five years, we can see that the ratio has fluctuated within a relatively narrow range between 12.54 and 14.60. This suggests that the company has maintained a consistent level of efficiency in collecting its receivables.
The slight fluctuations in the receivables turnover ratio may be influenced by various factors, such as changes in the company's credit policies, customer payment behavior, or overall economic conditions. Despite these fluctuations, the overall trend demonstrates that Hormel Foods Corporation has been effective in managing its accounts receivable and converting them into cash.
It is important for investors and stakeholders to continue monitoring the receivables turnover ratio in conjunction with other financial indicators to gain a comprehensive understanding of the company's financial performance and efficiency in managing its working capital.