Hormel Foods Corporation (HRL)
Total asset turnover
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,920,800 | 11,920,800 | 12,110,000 | 12,036,600 | 12,458,800 |
| Total assets | US$ in thousands | 13,434,700 | 13,434,700 | 13,448,800 | 13,448,800 | 13,306,900 |
| Total asset turnover | 0.89 | 0.89 | 0.90 | 0.89 | 0.94 |
October 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $11,920,800K ÷ $13,434,700K
= 0.89
Hormel Foods Corporation's total asset turnover ratio has been relatively stable over the past few years, ranging from 0.89 to 0.94. This ratio indicates that, on average, the company generates approximately $0.89 to $0.94 in sales for every dollar of assets it owns. A total asset turnover ratio below 1.0 suggests that the company may not be efficiently utilizing its assets to generate revenue. It is crucial for Hormel Foods Corporation to closely monitor and possibly improve its asset utilization to enhance operational efficiency and profitability in the future.