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Hormel Foods Inventory Turnover

: 1.74 (As of Jul. 2019)
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Inventory turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Hormel Foods's Cost of Goods Sold for the three months ended in Jul. 2019 was $1,857 Mil. Hormel Foods's Total Inventories for the quarter that ended in Jul. 2019 was $1,070 Mil. Hormel Foods's inventory turnover for the quarter that ended in Jul. 2019 was 1.74.

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 three months ended in Jul. 2019 was 52.55.

Total Inventories can be measured by Days Sales of Inventory (DSI). Hormel Foods's days sales of inventory (DSI) for the three months ended in Jul. 2019 was 42.61.

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 quarter that ended in Jul. 2019 was 0.47.


Hormel Foods Inventory Turnover Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Hormel Foods Annual Data
Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18
Inventory Turnover Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.66 7.28 7.44 7.51 8.01

Hormel Foods Quarterly Data
Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19
Inventory Turnover Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.89 2.01 1.91 1.85 1.74

Hormel Foods Inventory Turnover Calculation

Hormel Foods's Inventory Turnover for the fiscal year that ended in Oct. 2018 is calculated as

Inventory Turnover (A: Oct. 2018 )
=Cost of Goods Sold / Total Inventories
=Cost of Goods Sold (A: Oct. 2018 ) / ((Total Inventories (A: Oct. 2017 ) + Total Inventories (A: Oct. 2018 )) / 2 )
=7550.267 / ((921.022 + 963.527) / 2 )
=7550.267 / 942.2745
=8.01

Hormel Foods's Inventory Turnover for the quarter that ended in Jul. 2019 is calculated as

Inventory Turnover (Q: Jul. 2019 )
=Cost of Goods Sold / Total Inventories
=Cost of Goods Sold (Q: Jul. 2019 ) / ((Total Inventories (Q: Apr. 2019 ) + Total Inventories (Q: Jul. 2019 )) / 2 )
=1857.263 / ((1030.574 + 1108.514) / 2 )
=1857.263 / 1069.544
=1.74

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Hormel Foods  (NYSE:HRL) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher inventory turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. 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 three months ended in Jul. 2019 is calculated as:

Days Inventory =Total Inventories (Q: Jul. 2019 )/Cost of Goods Sold (Q: Jul. 2019 )*Days in Period
=1069.544/1857.263*365 / 4
=52.55

2. Total Inventories can be measured by Days Sales of Inventory (DSI).

Hormel Foods's Days Sales of Inventory for the three months ended in Jul. 2019 is calculated as:

Days Sales of Inventory (DSI)=Total Inventories (Q: Jul. 2019 )/Revenue (Q: Jul. 2019 )*Days in Period
=1069.544/2290.705*365 / 4
=42.61

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's Inventory to Revenue for the quarter that ended in Jul. 2019 is calculated as

Inventory-to-Revenue=Total Inventories (Q: Jul. 2019 ) / Revenue (Q: Jul. 2019 )
=1069.544 / 2290.705
=0.47

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate inventory turnover. An average inventory is a better indication.


Hormel Foods Inventory Turnover Related Terms


Hormel Foods Inventory Turnover Headlines

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