Hormel Foods (BSP:H1RL34) Days Inventory : 60.61 (As of Jan. 2024)

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What is Hormel Foods Days Inventory?

Days Inventory is also known as Days Sales of Inventory (DSI). Hormel Foods's Average Total Inventories for the three months ended in Jan. 2024 was R$8,129 Mil. Hormel Foods's Cost of Goods Sold for the three months ended in Jan. 2024 was R$12,237 Mil. Hence, Hormel Foods's Days Inventory for the three months ended in Jan. 2024 was 60.61.

The historical rank and industry rank for Hormel Foods's Days Inventory or its related term are showing as below:

BSP:H1RL34' s Days Inventory Range Over the Past 10 Years
Min: 45.46 Med: 48.79 Max: 61.31
Current: 61.09

During the past 13 years, Hormel Foods's highest Days Inventory was 61.31. The lowest was 45.46. And the median was 48.79.

BSP:H1RL34's Days Inventory is ranked better than
66.54% of 1787 companies
in the Consumer Packaged Goods industry
Industry Median: 82.23 vs BSP:H1RL34: 61.09

Hormel Foods's Days Inventory declined from Jan. 2023 (63.89) to Jan. 2024 (60.61).

Inventory Turnover measures how fast the company turns over its inventory within a year. Hormel Foods's Inventory Turnover for the three months ended in Jan. 2024 was 1.51.

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's Inventory-to-Revenue for the three months ended in Jan. 2024 was 0.55.

Hormel Foods Days Inventory Historical Data

The historical data trend for Hormel Foods's Days Inventory can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Hormel Foods Days Inventory Chart

Hormel Foods Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Days Inventory

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46.27

42.90

47.43

56.04

62.51

Hormel Foods Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Days Inventory	Get a 7-Day Free Trial															63.89	64.87	65.96	56.62	60.61

Competitive Comparison of Hormel Foods's Days Inventory

For the Packaged Foods subindustry, Hormel Foods's Days Inventory, along with its competitors' market caps and Days Inventory data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Hormel Foods's Days Inventory Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Hormel Foods's Days Inventory distribution charts can be found below:

* The bar in red indicates where Hormel Foods's Days Inventory falls into.

Hormel Foods Days Inventory Calculation

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

Hormel Foods's Days Inventory for the fiscal year that ended in Oct. 2023 is calculated as

	Days Inventory (A: Oct. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (A: Oct. 2022 )	+	Total Inventories (A: Oct. 2023 ))	/	count )	/	Cost of Goods Sold (A: Oct. 2023 )	*	Days in Period
=	( (9012.913	+	8495.965)	/	2 )	/	51116.004	*	365
=	8754.439					/	51116.004	*	365
=	62.51

Hormel Foods's Days Inventory for the quarter that ended in Jan. 2024 is calculated as:

	Days Inventory (Q: Jan. 2024 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (Q: Oct. 2023 )	+	Total Inventories (Q: Jan. 2024 ))	/	count )	/	Cost of Goods Sold (Q: Jan. 2024 )	*	Days in Period
=	( (8495.965	+	7761.859)	/	2 )	/	12237.357	*	365 / 4
=	8128.912					/	12237.357	*	365 / 4
=	60.61

Hormel Foods (BSP:H1RL34) Days Inventory Explanation

Days Inventory indicates the liquidity of the inventory. Generally, a lower Days Inventory is preferred as it indicates a shorter duration to clear off the inventory. An increase of the ratio may indicate the company's sales slowed. Similar ratios related to Days Inventory are:

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

Hormel Foods's Inventory Turnover for the three months ended in Jan. 2024 is calculated as

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	12237.357	/	8128.912
	=	1.51

2. 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's Inventory to Revenue for the three months ended in Jan. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	8128.912	/	14739.408
	=	0.55

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.

Hormel Foods Days Inventory Related Terms

Thank you for viewing the detailed overview of Hormel Foods's Days Inventory provided by GuruFocus.com. Please click on the following links to see related term pages.

Hormel Foods (BSP:H1RL34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Hormel Foods Corp (BSP:H1RL34) » Definitions » Days Inventory

Comparable Companies

Traded in Other Exchanges

HRL:USA HRL:Mexico HO7:Germany HRL:Austria

Address

1 Hormel Place, Austin, MN, USA, 55912-3680

Website

https://www.hormelfoods.com

Historically meat-focused, Hormel Foods broadened its lineup to include other protein offerings and become a branded food company. The firm sells its wares through multiple channels, including U.S. retail (64% of fiscal 2023 sales), U.S. food service (30%), and international (6%). By product, 53% of fiscal 2022 sales were from perishable food, 27% from shelf-stable, 17% from poultry, and 3% from other products. Major brands include Hormel, Spam, Jennie-O, Columbus, Applegate, Planters, and Skippy. Many of these hold the number one or two market share in their respective categories.

Hormel Foods (BSP:H1RL34) Headlines

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