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Hormel Foods Inventory-to-Revenue

: 0.47 (As of Jul. 2019)
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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 Total Inventories for the quarter that ended in Jul. 2019 was $1,070 Mil. Hormel Foods's Revenue for the three months ended in Jul. 2019 was $2,291 Mil. Hormel Foods's inventory to revenue ratio for the quarter that ended in Jul. 2019 was 0.47.

Hormel Foods's inventory to revenue ratio for the quarter that ended in Jul. 2019 increased from Apr. 2019 (0.43) to Apr. 2019 (0.47)

An increase in inventory to revenue ratio from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the inventory to revenue ratio may signal an oncoming cash flow problem.

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 Turnover measures how fast the company turns over its inventory within a year. Hormel Foods's Inventory Turnover for the quarter that ended in Jul. 2019 was 1.74.


Hormel Foods Inventory-to-Revenue 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-to-Revenue Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.11 0.11 0.10 0.10 0.10

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-to-Revenue 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 0.43 0.39 0.42 0.43 0.47

Competitive Comparison
* 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.


Hormel Foods Inventory-to-Revenue Distribution

* The bar in red indicates where Hormel Foods's Inventory-to-Revenue falls into.



Hormel Foods Inventory-to-Revenue Calculation

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 fiscal year that ended in Oct. 2018 is calculated as

Inventory to Revenue (A: Oct. 2018 )
=Total Inventories / Revenue
=( (Total Inventories (A: Oct. 2017 ) + Total Inventories (A: Oct. 2018 )) / 2 ) / Revenue (A: Oct. 2018 )
=( (921.022 + 963.527) / 2 ) / 9545.7
=942.2745 / 9545.7
=0.10

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

Inventory to Revenue (Q: Jul. 2019 )
=Total Inventories / Revenue
=( (Total Inventories (Q: Apr. 2019 ) + Total Inventories (Q: Jul. 2019 )) / 2 ) / Revenue (Q: Jul. 2019 )
=( (1030.574 + 1108.514) / 2 ) / 2290.705
=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.


Hormel Foods  (NYSE:HRL) Inventory-to-Revenue Explanation

An increase in inventory to revenue ratio from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the inventory to revenue ratio may signal an oncoming cash flow problem.

Likewise, a decrease in the inventory to revenue ratio from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the inventory to revenue ratio, either one suggests that business's inventory levels and its cash flow are effectively managed.

More Related Terms:

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

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

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

Inventory Turnover=Cost of Goods Sold (Q: Jul. 2019 ) / Total Inventories (Q: Jul. 2019 )
=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 Inventory-to-Revenue Related Terms


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