Campbell Soup Company Common Stock (CPB)
Activity ratios
Short-term
Turnover ratios
| Jul 31, 2024 | Jul 28, 2024 | Jul 31, 2023 | Jul 30, 2023 | Jul 31, 2022 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.81 | 6.17 | 4.99 | 6.16 | 4.76 |
| Receivables turnover | — | 15.30 | — | 17.69 | — |
| Payables turnover | — | 6.53 | — | 6.09 | — |
| Working capital turnover | — | — | — | — | — |
The inventory turnover ratio for Campbell Soup Company Common Stock has shown a fluctuating trend over the years, with values ranging from 4.76 to 6.17. This ratio indicates how efficiently the company is managing its inventory by selling and replenishing stock. The upward trend from 2022 to 2024 suggests an improvement in inventory management efficiency.
On the other hand, the receivables turnover ratio displays more inconsistency, with values of 17.69 and 15.30 in 2023 and 2024, respectively. The absence of data for some periods indicates potential issues with timely collection of receivables, which could impact the company's cash flow and liquidity.
The payables turnover ratio has remained relatively stable around 6.09 to 6.53, reflecting the speed at which Campbell Soup Company pays its suppliers. A consistent or increasing payables turnover ratio can indicate effective cash management practices and good relationships with vendors.
The working capital turnover ratio data is not available for any of the years provided, making it challenging to assess how efficiently the company is utilizing its working capital to generate sales. This missing information limits the insight into the company's operational efficiency and resource utilization.
In summary, the inventory turnover ratio suggests an improvement in inventory management, while the receivables turnover ratio raises concerns about potential delays in collecting receivables. The stability of the payables turnover ratio indicates a consistent approach to managing supplier payments. However, the absence of working capital turnover data hinders a comprehensive analysis of Campbell Soup Company's operational efficiency.
Average number of days
| Jul 31, 2024 | Jul 28, 2024 | Jul 31, 2023 | Jul 30, 2023 | Jul 31, 2022 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 75.90 | 59.11 | 73.17 | 59.26 | 76.63 |
| Days of sales outstanding (DSO) | days | — | 23.86 | — | 20.64 | — |
| Number of days of payables | days | — | 55.91 | — | 59.95 | — |
The activity ratios for Campbell Soup Company Common Stock reveal important insights into its operational efficiency and management of working capital.
1. Days of Inventory on Hand (DOH):
- The trend in DOH shows fluctuations over the years, with the number of days of inventory on hand decreasing from 76.63 days in July 2022 to 59.11 days in July 2024.
- A lower DOH indicates that the company is selling its inventory more quickly, which can be a positive sign of efficient inventory management.
2. Days of Sales Outstanding (DSO):
- DSO measures how quickly a company collects payments from its customers. The data provided shows some variability in DSO over the years.
- In July 2023 and July 2024, DSO is reported at 20.64 days and 23.86 days respectively, indicating that the company is collecting payments from customers within a relatively short time frame.
3. Number of Days of Payables:
- The number of days of payables remained relatively stable over the years, ranging from 55.91 days in July 2024 to 59.95 days in July 2023.
- A higher number of days of payables suggests that the company is taking longer to pay its suppliers, which can sometimes indicate financial strength or bargaining power.
Overall, a lower DOH and DSO, coupled with a stable number of days of payables, may suggest that Campbell Soup Company is effectively managing its operating cycle, optimizing working capital, and maintaining healthy liquidity levels. However, further analysis and comparison with industry benchmarks would provide a more comprehensive assessment of the company's performance in relation to its peers.
Long-term
| Jul 31, 2024 | Jul 28, 2024 | Jul 31, 2023 | Jul 30, 2023 | Jul 31, 2022 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | 3.57 | 3.50 | 3.90 | 3.65 |
| Total asset turnover | 0.63 | 0.63 | 0.78 | 0.78 | 0.72 |
Based on the data provided, we can analyze Campbell Soup Company's Common Stock long-term activity ratios:
1. Fixed Asset Turnover:
- July 31, 2022: 3.65
- July 30, 2023: 3.90
- July 31, 2023: 3.50
- July 28, 2024: 3.57
The fixed asset turnover ratio measures how efficiently a company is generating sales from its fixed assets. An increasing trend in the fixed asset turnover ratio over the years indicates that Campbell Soup Company has been utilizing its fixed assets more effectively to generate sales. The company has shown improvement in this aspect from 2022 to 2023, with a slight decrease in 2024.
2. Total Asset Turnover:
- July 31, 2022: 0.72
- July 30, 2023: 0.78
- July 31, 2023: 0.78
- July 28, 2024: 0.63
The total asset turnover ratio reflects how efficiently a company is generating sales from its total assets. Campbell Soup Company has seen fluctuations in this ratio, with an improvement from 2022 to 2023 and a decrease in 2024. A higher total asset turnover ratio indicates better asset utilization, so it is essential for the company to monitor and possibly increase this ratio in the future.
In conclusion, Campbell Soup Company's fixed asset turnover ratio has shown improvement over the years, indicating better utilization of fixed assets for generating sales. However, the total asset turnover ratio has seen fluctuations, signifying the importance of efficient utilization of total assets to enhance overall operational performance and profitability in the long term.