Hormel Foods Corporation (HRL)

Total asset turnover

		Oct 27, 2024	Jul 28, 2024	Apr 28, 2024	Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Jul 25, 2021	Apr 25, 2021	Jan 24, 2021	Oct 25, 2020	Jul 26, 2020	Apr 26, 2020	Jan 26, 2020
Revenue (ttm)	US$ in thousands	11,880,780	11,922,100	11,968,590	12,062,240	12,038,800	12,123,670	12,197,540	12,320,120	12,393,100	12,565,850	12,399,020	11,915,950	11,339,360	10,322,430	9,846,190	9,666,330	9,595,680	9,677,090	9,588,850	9,509,010
Total assets	US$ in thousands	13,434,700	13,113,800	14,135,400	13,513,000	13,448,800	13,426,800	13,315,700	13,283,000	13,306,900	13,140,400	13,122,300	12,827,000	12,696,300	12,332,200	9,889,000	9,957,930	9,908,280	9,600,470	8,395,180	8,290,110
Total asset turnover		0.88	0.91	0.85	0.89	0.90	0.90	0.92	0.93	0.93	0.96	0.94	0.93	0.89	0.84	1.00	0.97	0.97	1.01	1.14	1.15

October 27, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $11,880,780K ÷ $13,434,700K
= 0.88

The total asset turnover ratio for Hormel Foods Corporation has exhibited some fluctuations over the past few years. The ratio has ranged from as low as 0.84 to as high as 1.15, with an average of around 0.94.

A total asset turnover ratio below 1 indicates that the company generates less in sales compared to its total assets, which could suggest inefficiencies in asset utilization. However, it is worth noting that the company's ratio seems to have improved and fluctuated above 1, indicating that Hormel Foods has been able to generate more sales relative to its total assets in recent years.

Overall, the trend in total asset turnover suggests that Hormel Foods has been effective in managing its assets to generate revenue, with recent improvements potentially indicating better operational efficiency and asset utilization.