Campbell’s Co (CPB)

Short-term

Turnover ratios

The activity ratios for Campbell’s Co, as derived from the provided data, offer insights into the company's operational efficiency over the specified periods.

The inventory turnover ratios indicate the frequency with which inventory is sold and replaced within a fiscal year. At July 30, 2023, the ratio stood at 6.16, slightly increasing to 6.17 by July 28, 2024, suggesting a consistent inventory management approach with an efficient turnover rate. Conversely, the slightly decreasing ratios at July 31, 2023 (4.99) and July 31, 2024 (4.81) reflect a muted trend, potentially indicating a slowdown in inventory movement or a change in sales volume. The absence of data beyond July 2024 precludes further trend analysis.

Receivables turnover ratios demonstrate how effectively the company collects its accounts receivable. The ratio maintained at 17.69 on July 30 and July 31, 2023, then declined to 15.30 at July 28 and July 31, 2024. This decline implies a reduction in collection efficiency, which could result from extended credit terms or delays in receivables collection. The persistent data gap beyond July 2024 limits the assessment of future trends.

Payables turnover ratios reflect the company's payment activity towards suppliers. The ratio decreased from 6.09 at July 30, 2023, to 4.93 at July 31, 2023, but subsequently increased to 6.53 by July 28, 2024, and decreased again to 5.08 at July 31, 2024. These fluctuations hint at varying payment practices, with some periods of faster settlement and others of extended credit. The missing data beyond July 2024 restricts comprehensive trend analysis.

The working capital turnover ratio was not available for any of the periods, indicating an absence of data related to how effectively the company utilizes its working capital to generate sales.

Overall, the activity ratios reflect certain stability in inventory management and payables activities, with some adjustments in receivables collection efficiency over time. The limited data and gaps hinder a definitive long-term trend analysis.

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Average number of days

Based on the provided activity ratios for Campbell’s Co, a detailed analysis reveals the following insights:

Days of Inventory on Hand (DOH):
The DOH metric measures the average number of days that inventory is held before it is sold. The data indicates a decrease from approximately 73.17 days as of July 31, 2023, to around 59.26 days as of July 30, 2023. Similarly, for the subsequent year, the days slightly decreased from about 75.90 days to 59.11 days by July 28, 2024. This reduction suggests that the company has become more efficient at managing inventory, reducing the inventory holding period over time. Such efficiency could minimize storage costs and reduce the risk of obsolescence.

Days of Sales Outstanding (DSO):
DSO measures the average number of days it takes to collect receivables from customers. The data shows a fairly consistent DSO around 20.64 days as of July 30 and 31, 2023, with an observed increase to approximately 23.86 days by July 28, 2024. This slight lengthening indicates a marginal delay in receivable collections, possibly reflecting extended credit terms or challenges in receivables collection. Nonetheless, the DSO remains within a relatively short period, implying efficient credit and collection processes, although there is some room for improvement.

Number of Days of Payables:
This ratio indicates the average period the company takes to settle its accounts payable. The figures show an increase from roughly 59.95 days on July 30, 2023, to about 74.02 days on July 31, 2023, and then a decrease to approximately 55.91 days by July 28, 2024. The variability suggests shifts in the company's payment policies or supplier terms. The extension in days during one period indicates a tendency to delay payments, potentially enhancing short-term liquidity but possibly impacting supplier relationships if prolonged excessively.

Summary:
Overall, Campbell’s Co demonstrates improved inventory management efficiency, as evidenced by decreasing DOH ratios. Slight increases in DSO reflect modest delays in receivables collection but remain within manageable bounds. Variations in days of payables suggest fluctuating payment strategies that could influence cash flow management. The trend towards shorter inventory holding periods combined with stable receivables collection times may positively impact operational efficiency and liquidity profiles, provided the company manages its payables strategically to maintain supplier relationships. Further analyses could incorporate additional financial metrics to assess the broader implications of these activity ratios on the company's overall operational performance.

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Long-term

The analysis of Campbell’s Co long-term activity ratios reveals insights into the company's utilization of its fixed assets and total assets over recent periods.

Regarding the Fixed Asset Turnover ratio, the data shows an initial value of 3.90 as of July 30, 2023, indicating a relatively efficient use of fixed assets to generate sales. This ratio decreased initially to 3.50 as of July 31, 2023, suggesting a slight decline in fixed assets efficiency in the short term. Subsequently, the ratio increased to 3.57 as of July 28, 2024, reflecting a modest recovery in the utilization of fixed assets. For the subsequent periods, the data is unavailable or not reported. Overall, the fluctuations suggest that Campbell’s Co has maintained a generally stable engagement in fixed assets efficiency, with a slight decrease followed by a small recovery within the analyzed timeframe.

In contrast, the Total Asset Turnover ratio remained stable at 0.78 during the periods ending July 30 and July 31, 2023, illustrating consistent overall asset utilization to generate sales. A decline is observed for the period ending July 28, 2024, with the ratio decreasing to 0.63, indicating a reduction in the efficiency of total assets in producing sales. This lower ratio persisted at 0.63 as of July 31, 2024, but then shows an improvement to 0.69 as of July 31, 2025, suggesting that the company has enhanced its overall asset efficiency in the most recent period.

In summary, Campbell’s Co exhibits relatively stable fixed asset efficiency with minor variations, highlighting consistent utilization of its fixed assets over the periods examined. The total asset turnover ratio indicates a temporary decline, possibly due to increased asset levels or reduced sales efficiency, but this trend shows signs of improvement toward the most recent period, reflecting better overall asset utilization.