Hormel Foods Corporation (HRL)
Total asset 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 |
| Total assets | US$ in thousands | 13,434,700 | 13,448,800 | 13,306,900 | 12,696,300 | 9,908,280 |
| Total asset turnover | 0.89 | 0.89 | 0.93 | 0.89 | 0.97 |
October 27, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $11,920,800K ÷ $13,434,700K
= 0.89
Hormel Foods Corporation's total asset turnover has been relatively consistent over the past five years, ranging from 0.89 to 0.97. This ratio indicates the company's ability to generate sales revenue from its total assets. A total asset turnover of less than 1 suggests that the company is not efficiently utilizing its assets to generate sales. It appears that Hormel Foods has faced challenges in improving its asset utilization efficiency, as the ratio has not shown significant improvement over the years. Further analysis of the company's operational efficiency and asset management practices may be warranted to enhance overall performance and profitability.