Hormel Foods Corporation (HRL)
Working capital 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 current assets | US$ in thousands | 3,246,480 | 2,997,450 | 3,976,520 | 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 |
| Total current liabilities | US$ in thousands | 1,399,300 | 1,309,750 | 2,304,810 | 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 |
| Working capital turnover | 6.43 | 7.06 | 7.16 | 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 |
October 27, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $11,880,780K ÷ ($3,246,480K – $1,399,300K)
= 6.43
Hormel Foods Corporation's working capital turnover has demonstrated fluctuations over the past several quarters. The company's working capital turnover ratio peaked at 12.98 in July 2023, indicating that the company effectively generated revenue relative to its working capital during that period. However, the ratio decreased to 4.21 in April 2021, before gradually recovering to 6.43 in October 2024.
Overall, the company's working capital turnover has shown variability but generally remains within a range that suggests efficient management of working capital in generating revenue. It is essential to monitor this ratio continuously to ensure that the company is effectively utilizing its working capital to support its operations and growth initiatives.