Switch to:

Hormel Foods Asset Turnover

: 0.29 (As of Jul. 2019)
View and export this data going back to 1990. Start your Free Trial

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Hormel Foods's Revenue for the three months ended in Jul. 2019 was $2,291 Mil. Hormel Foods's Total Assets for the quarter that ended in Jul. 2019 was $7,945 Mil. Therefore, Hormel Foods's asset turnover for the quarter that ended in Jul. 2019 was 0.29.

Asset Turnover is linked to ROE % through Du Pont Formula. Hormel Foods's annualized ROE % for the quarter that ended in Jul. 2019 was 13.54%. It is also linked to ROA % through Du Pont Formula. Hormel Foods's annualized ROA % for the quarter that ended in Jul. 2019 was 10.04%.


Hormel Foods Asset 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
Asset Turnover Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.80 1.60 1.52 1.37 1.26

Hormel Foods Quarterly Data
Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19
Asset 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 0.30 0.32 0.29 0.29 0.29

Hormel Foods Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

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

Asset Turnover
=Sales/Average Total Assets
=Revenue (A: Oct. 2018 )/( (Total Assets (A: Oct. 2017 )+Total Assets (A: Oct. 2018 ))/ 2 )
=9545.7/( (6975.908+8142.292)/ 2 )
=9545.7/7559.1
=1.26

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

Asset Turnover
=Sales/Average Total Assets
=Revenue (Q: Jul. 2019 )/( (Total Assets (Q: Apr. 2019 )+Total Assets (Q: Jul. 2019 ))/ 2 )
=2290.705/( (7935.745+7954.576)/ 2 )
=2290.705/7945.1605
=0.29

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

Companies with low profit margins tend to have high asset turnover, while those with high profit margins have low asset turnover. Companies in the retail industry tend to have a very high turnover ratio.


Hormel Foods  (NYSE:HRL) Asset Turnover Explanation

Asset Turnover is linked to Return on Equity (ROE) through Du Pont Formula.

Hormel Foods's annulized ROE % for the quarter that ended in Jul. 2019 is

ROE %(Q: Jul. 2019 )
=Net Income/Total Stockholders Equity
=797.796/5892.2035
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(797.796 / 9162.82)*(9162.82 / 7945.1605)*(7945.1605/ 5892.2035)
=Net Margin %*Asset Turnover*Leverage Ratio
=8.71 %*1.1533*1.3484
=ROA %*Leverage Ratio
=10.04 %*1.3484
=13.54 %

Note: The Net Income data used here is four times the quarterly (Jul. 2019) net income data. The Revenue data used here is four times the quarterly (Jul. 2019) revenue data.

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

It is also linked to Return on Assets (ROA) through Du Pont Formula:

Hormel Foods's annulized ROA % for the quarter that ended in Jul. 2019 is

ROA %(Q: Jul. 2019 )
=Net Income/Total Assets
=797.796/7945.1605
=(Net Income / Revenue)*(Revenue / Total Assets)
=(797.796 / 9162.82)*(9162.82 / 7945.1605)
=Net Margin %*Asset Turnover
=8.71 %*1.1533
=10.04 %

Note: The Net Income data used here is four times the quarterly (Jul. 2019) net income data. The Revenue data used here is four times the quarterly (Jul. 2019) revenue data.

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


Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's asset turnover is consistent or even increases. If a company's asset grows faster than sales, its asset turnover will decline, which can be a warning sign.


Hormel Foods Asset Turnover Related Terms


Hormel Foods Asset Turnover Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK