Hormel Foods Corporation (HRL)
Cash conversion cycle
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 58.12 | 52.65 | 60.67 | 55.22 | 60.85 |
| Days of sales outstanding (DSO) | days | — | 26.59 | — | 25.01 | — |
| Number of days of payables | days | — | 24.57 | — | 25.35 | — |
| Cash conversion cycle | days | 58.12 | 54.67 | 60.67 | 54.88 | 60.85 |
October 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 58.12 + — – —
= 58.12
Hormel Foods Corporation's cash conversion cycle, which measures how long it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has shown fluctuations over the timeframe provided.
On October 31, 2022, the cash conversion cycle stood at 60.85 days, indicating that it took the company approximately 60.85 days to convert its investments into cash.
By October 29, 2023, the cash conversion cycle improved to 54.88 days, suggesting that the company was able to streamline its operations and convert its investments into cash more efficiently.
However, by October 31, 2023, the cash conversion cycle increased to 60.67 days, indicating a slowdown in converting investments into cash flows.
On October 27, 2024, there was a significant improvement in the cash conversion cycle, which decreased to 54.67 days, showcasing the company's ability to enhance its operational efficiency in converting investments into cash.
By October 31, 2024, the cash conversion cycle slightly increased to 58.12 days from the previous year, but still reflected a relatively efficient conversion of investments into cash flow.
Overall, the fluctuations in Hormel Foods Corporation's cash conversion cycle indicate varying efficiency levels in their working capital management and operations over the period analyzed.