Hormel Foods Corporation (HRL)
Total asset turnover
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,036,600 | 12,389,600 | 11,339,200 | 9,585,600 | 9,496,530 |
| Total assets | US$ in thousands | 13,448,800 | 13,306,900 | 12,696,300 | 9,908,280 | 8,109,000 |
| Total asset turnover | 0.89 | 0.93 | 0.89 | 0.97 | 1.17 |
October 29, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $12,036,600K ÷ $13,448,800K
= 0.89
The total asset turnover ratio measures the efficiency with which a company utilizes its assets to generate sales. A higher ratio indicates better utilization of assets.
Hormel Foods Corp.'s total asset turnover has shown a declining trend from 1.17 in 2019 to 0.90 in 2023. This may suggest a decrease in the company's ability to use its assets to generate sales.
Several factors could contribute to this decline, including underutilization of assets, decreased sales, or an increase in total assets without a proportionate rise in sales. It is important for investors and stakeholders to closely monitor the company's asset management and sales performance to understand the underlying reasons for this trend.