Hormel Foods Corporation (HRL)
Total asset turnover
| 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 | Oct 27, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 9,481,890 | 9,505,080 | 9,568,300 |
| Total assets | US$ in thousands | 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 | 8,109,000 | 7,954,580 | 7,935,740 |
| Total asset turnover | 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 | 1.17 | 1.19 | 1.21 |
January 28, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $12,062,240K ÷ $13,513,000K
= 0.89
The total asset turnover ratio for Hormel Foods Corp. has ranged from 0.90 to 0.96 over the past eight quarters. This ratio measures the company's efficiency in generating sales revenue from its total assets. A higher total asset turnover indicates that the company is effectively utilizing its assets to generate revenue.
The trend in the total asset turnover ratio for Hormel Foods Corp. has been relatively stable, with minor fluctuations between 0.90 and 0.96. This suggests that the company has been maintaining a consistent level of efficiency in utilizing its assets to generate sales.
However, a slight decrease in the total asset turnover ratio from 0.96 in Q3 2022 to 0.90 in Q1 2024 may indicate a potential decrease in the company's efficiency in generating sales revenue from its assets. Further analysis is needed to determine the underlying reasons for this change and to assess the company's overall asset management efficiency.
Overall, based on the data provided, Hormel Foods Corp. has demonstrated a reasonable level of asset utilization efficiency, as indicated by the range of total asset turnover ratios observed over the past eight quarters.