Hormel Foods Corporation (HRL)
Working capital 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 current assets | US$ in thousands | 3,246,480 | 3,246,480 | 3,297,250 | 3,297,250 | 3,637,120 |
| Total current liabilities | US$ in thousands | 1,399,300 | 1,399,300 | 2,311,780 | 2,311,780 | 1,473,270 |
| Working capital turnover | 6.45 | 6.45 | 12.29 | 12.21 | 5.76 |
October 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $11,920,800K ÷ ($3,246,480K – $1,399,300K)
= 6.45
Hormel Foods Corporation's working capital turnover has shown fluctuations over the past few years. As of October 31, 2022, the working capital turnover ratio stood at 5.76, indicating that the company generated $5.76 in revenue for every dollar of working capital invested.
Over the following years, there was a significant increase in efficiency, with the ratio climbing to 12.21 by October 29, 2023, and further reaching 12.29 by October 31, 2023. This suggests a substantial improvement in the company's ability to utilize its working capital to generate sales.
However, there was a notable decline in performance by October 27, 2024, as the working capital turnover ratio dropped to 6.45, the same level as reported on October 31, 2024. Despite this dip, the company still maintained a relatively efficient turnover of working capital, showcasing its ability to efficiently manage its current assets and liabilities to drive revenue generation.
Overall, the trend in Hormel Foods Corporation's working capital turnover reflects periods of both improvement and slight regression, highlighting the importance of consistently monitoring and optimizing working capital efficiency to support sustainable business operations.