Hormel Foods Corporation (HRL)
Working capital 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 current assets | US$ in thousands | 3,367,160 | 3,297,250 | 3,254,770 | 3,162,600 | 3,195,310 | 3,637,120 | 3,403,480 | 3,373,560 | 3,093,350 | 2,947,820 | 2,688,670 | 3,514,290 | 3,601,660 | 3,579,060 | 3,409,770 | 2,248,900 | 2,394,970 | 2,361,410 | 2,245,970 | 2,250,670 |
| Total current liabilities | US$ in thousands | 2,260,780 | 2,311,780 | 2,320,620 | 1,305,220 | 1,373,380 | 1,473,270 | 1,419,900 | 1,480,660 | 1,415,330 | 1,415,650 | 1,251,190 | 1,175,180 | 1,417,470 | 1,503,960 | 1,427,050 | 1,324,600 | 1,023,080 | 1,105,050 | 1,073,090 | 1,051,680 |
| Working capital turnover | 10.90 | 12.22 | 12.98 | 6.57 | 6.76 | 5.73 | 6.33 | 6.55 | 7.10 | 7.40 | 7.18 | 4.21 | 4.43 | 4.62 | 4.88 | 10.37 | 6.93 | 7.55 | 8.10 | 7.98 |
January 28, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $12,062,240K ÷ ($3,367,160K – $2,260,780K)
= 10.90
Hormel Foods Corp.'s working capital turnover has shown fluctuations over the past eight quarters. The working capital turnover ratio measures the efficiency of a company in utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively using its working capital to generate sales.
In Q1 2024, the working capital turnover was at 10.97, indicating that the company generated $10.97 in sales for every dollar of working capital invested. This was a decrease from Q4 2023, where the ratio was at 12.29. The decrease suggests a potential decline in the efficiency of utilizing working capital to generate sales.
Prior to Q1 2024, the ratio experienced fluctuations in Q3 2023 and Q2 2023, with ratios of 13.06 and 6.60 respectively. Q3 2023 showed the highest efficiency in utilizing working capital to generate sales, while Q2 2023 exhibited comparatively lower efficiency.
Comparing the most recent data to the same quarter in the previous year, there has been an improvement in working capital turnover. In Q1 2023, the working capital turnover was at 6.80, indicating a notable increase in efficiency to 10.97 in Q1 2024.
Overall, while there have been fluctuations in working capital turnover for Hormel Foods Corp., there is a general trend of fluctuations in efficiency in utilizing working capital to generate sales over the analyzed quarters. It is important for the company to continue monitoring and managing its working capital effectively to ensure sustainable growth and profitability.