Hormel Foods Corporation (HRL)

Total asset turnover

		Jan 31, 2025	Oct 31, 2024	Oct 27, 2024	Jul 31, 2024	Jul 28, 2024	Apr 30, 2024	Apr 28, 2024	Jan 31, 2024	Jan 28, 2024	Oct 31, 2023	Oct 29, 2023	Jul 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 31, 2023	Jan 29, 2023	Oct 31, 2022	Oct 30, 2022	Jul 31, 2022	May 1, 2022
Revenue (ttm)	US$ in thousands	12,163,430	12,073,060	11,822,320	11,549,900	11,648,370	11,728,510	12,039,240	12,352,980	12,319,370	12,285,720	12,065,280	11,856,860	11,848,700	12,187,250	12,473,890	12,537,310	12,664,070	12,477,150	12,257,230	12,250,940
Total assets	US$ in thousands	13,403,500	13,434,700	13,434,700	13,113,800	13,113,800	14,135,400	14,135,400	13,513,000	13,513,000	13,448,800	13,448,800	13,426,800	13,426,800	13,315,700	13,283,000	13,283,000	13,306,900	13,306,900	13,140,400	13,122,300
Total asset turnover		0.91	0.90	0.88	0.88	0.89	0.83	0.85	0.91	0.91	0.91	0.90	0.88	0.88	0.92	0.94	0.94	0.95	0.94	0.93	0.93

January 31, 2025 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $12,163,430K ÷ $13,403,500K
= 0.91

Total asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its total assets. For Hormel Foods Corporation, the total asset turnover ratio fluctuated over the given period, ranging from 0.83 to 0.95.

The company's total asset turnover started at 0.93 on May 1, 2022, remained relatively stable at around 0.93 to 0.95 until January 31, 2023. However, the ratio experienced a slight decline to 0.92 by April 30, 2023, and further dropped to 0.88 by July 30, 2023, remaining at this level until October 29, 2023.

Subsequently, there was a slight increase in total asset turnover to 0.91 by January 31, 2024, but the ratio fell to 0.83 by April 30, 2024, its lowest point in the given period. From there, the ratio showed some recovery, reaching 0.91 by January 31, 2025.

The fluctuation in Hormel Foods Corporation's total asset turnover suggests variations in its ability to utilize its assets efficiently to generate sales. A higher total asset turnover indicates better asset utilization and revenue generation, while a lower ratio may indicate inefficiencies in asset management or challenges in generating sales revenue relative to the asset base.