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Hormel Foods Corp (NYSE:HRL)
Days Inventory
47.35 (As of Oct. 2015)

Hormel Foods Corp's average inventory for the three months ended in Oct. 2015 was $989 Mil. Hormel Foods Corp's cost of goods sold for the three months ended in Oct. 2015 was $1,906 Mil. Hence, Hormel Foods Corp's days inventory for the three months ended in Oct. 2015 was 47.35.

HRL' s Days Inventory Range Over the Past 10 Years
Min: 45.89   Max: 50.6
Current: 49.08

45.89
50.6

During the past 13 years, Hormel Foods Corp's highest Days Inventory was 50.60. The lowest was 45.89. And the median was 47.17.

HRL's Days Inventory is ranked higher than
63% of the 1426 Companies
in the Global Packaged Foods industry.

( Industry Median: 66.21 vs. HRL: 49.08 )

Hormel Foods Corp's days inventory increased from Oct. 2014 (45.87) to Oct. 2015 (47.35). It might indicate that Hormel Foods Corp's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Hormel Foods Corp's days sales of inventory (DSI) for the three months ended in Oct. 2015 was 37.58.

Inventory turnover measures how fast the company turns over its inventory within a year. Hormel Foods Corp's inventory turnover for the three months ended in Oct. 2015 was 1.93.

Inventory to revenue ratio determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Hormel Foods Corp's inventory to revenue ratio for the three months ended in Oct. 2015 was 0.41.


Definition

Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Hormel Foods Corp's Days Inventory for the fiscal year that ended in Oct. 2015 is calculated as

Days Inventory (A: Oct. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Oct. 2014 ) + Inventory (A: Oct. 2015 )) / 2 ) / COGS (A: Oct. 2015 )*Days in Period
=( (1054.552 + 993.265) / 2 ) / 7455.282*365
=1023.9085 / 7455.282*365
=50.13

Hormel Foods Corp's Days Inventory for the quarter that ended in Oct. 2015 is calculated as:

Days Inventory (Q: Oct. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Jul. 2015 ) + Inventory (Q: Oct. 2015 )) / 2 ) / COGS (Q: Oct. 2015 )*Days in Period
=( (984.452 + 993.265) / 2 ) / 1905.828*365 / 4
=988.8585 / 1905.828*365 / 4
=47.35

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

An increase of Days Inventory may indicate the company's sales slowed.

1. Inventory can be measured by Days Sales of Inventory (DSI).

Hormel Foods Corp's Days Sales of Inventory for the three months ended in Oct. 2015 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=988.8585/2400.858*365 / 4
=37.58

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

Hormel Foods Corp's Inventory Turnover for the three months ended in Oct. 2015 is calculated as

3. Inventory to Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Hormel Foods Corp's Inventory to Revenue for the three months ended in Oct. 2015 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=988.8585 / 2400.858
=0.41

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.


Related Terms

Cost of Goods Sold, Inventory, Revenue, Inventory Turnover, Inventory to Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Hormel Foods Corp Annual Data

Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15
DaysInventory 46.2546.5145.8950.6046.2546.7248.5847.7147.6250.13

Hormel Foods Corp Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
DaysInventory 49.9546.4346.8248.3650.6045.8748.4549.6549.9547.35
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