Campbell Soup Company Common Stock (CPB)
Activity ratios
Short-term
Turnover ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.89 | 5.21 | 5.45 | 5.51 | 5.81 | 5.88 | 6.47 | 6.23 | 5.25 | 5.13 | 5.00 | 5.55 | 5.58 | 6.16 | 5.91 | 5.22 | 5.01 | 5.01 | 6.41 | 6.12 |
| Receivables turnover | — | — | — | 15.06 | — | 15.12 | — | 15.06 | — | 12.24 | — | 17.52 | — | — | 16.12 | — | 12.04 | — | 16.98 | — |
| Payables turnover | — | — | — | 5.82 | — | 5.75 | — | 5.67 | — | 5.02 | — | 5.48 | — | — | 5.38 | — | 4.71 | — | 5.20 | — |
| Working capital turnover | — | — | — | — | — | — | 710.57 | 682.86 | — | — | — | — | — | — | — | — | — | — | — | — |
The activity ratios of Campbell Soup Company Common Stock provide insights into the efficiency of the company's operations.
1. Inventory turnover: Campbell Soup Company has maintained a relatively stable inventory turnover ratio over the analyzed periods, ranging from 5.00 to 6.47 times. A higher ratio indicates that the company is selling its inventory more efficiently. The fluctuations in the ratio may suggest variations in sales or inventory management strategies.
2. Receivables turnover: The receivables turnover ratio shows how efficiently the company collects payments from its customers. Campbell Soup Company demonstrates varying receivables turnover ratios, with some periods showing no data (marked as "—") and others ranging between 12.04 and 17.52. A higher ratio implies faster collection of receivables, which is favorable for the company's cash flow.
3. Payables turnover: The payables turnover ratio reflects how quickly the company pays its suppliers. Campbell Soup Company shows fluctuations in payables turnover ratios, with some periods having no data available. The ratios range between 4.71 and 5.82, indicating the company's payment cycle to suppliers. A higher ratio suggests faster payments to suppliers.
4. Working capital turnover: The working capital turnover ratio measures how efficiently the company generates revenue relative to its working capital. Campbell Soup Company had no data available for most periods, except for January 2024 and January 2025, where the ratios were 682.86 and 710.57, respectively. These values suggest that the company generated significant revenue relative to its working capital during those periods.
Overall, analyzing these activity ratios provides valuable insights into Campbell Soup Company's ability to manage its inventory, collect receivables, pay suppliers, and generate revenue efficiently.
Average number of days
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 61.96 | 70.09 | 66.96 | 66.25 | 62.80 | 62.03 | 56.41 | 58.60 | 69.49 | 71.20 | 73.00 | 65.81 | 65.39 | 59.25 | 61.74 | 69.99 | 72.82 | 72.88 | 56.95 | 59.67 |
| Days of sales outstanding (DSO) | days | — | — | — | 24.24 | — | 24.14 | — | 24.24 | — | 29.83 | — | 20.84 | — | — | 22.65 | — | 30.33 | — | 21.49 | — |
| Number of days of payables | days | — | — | — | 62.67 | — | 63.47 | — | 64.37 | — | 72.69 | — | 66.58 | — | — | 67.81 | — | 77.42 | — | 70.15 | — |
Based on the provided data, let's analyze the activity ratios of Campbell Soup Company Common Stock:
1. Days of Inventory on Hand (DOH):
- The DOH represents the number of days the company takes to sell its inventory. A decrease in DOH indicates faster inventory turnover.
- Campbell Soup Company's DOH fluctuated over the periods, ranging from around 56 to 73 days.
- Generally, a lower DOH is favorable as it indicates efficient management of inventory levels. Campbell Soup's DOH seems to be within a reasonable range but has shown some variation.
2. Days of Sales Outstanding (DSO):
- DSO reflects the average number of days it takes for the company to collect revenue after making sales. Lower DSO values suggest faster cash collections.
- Campbell Soup Company's DSO varied across the periods provided, ranging from around 20 to 30 days.
- A lower DSO is preferable as it signifies efficient credit management. Campbell Soup's DSO shows variability, indicating fluctuations in its receivables management.
3. Number of Days of Payables:
- This ratio represents how many days the company takes to pay its suppliers. A higher number of days indicates a longer time taken to pay suppliers.
- Campbell Soup's days of payables ranged from approximately 62 to 77 days, showing some variability.
- A higher number of days of payables may suggest that the company is effectively using trade credit to manage cash flow. It is essential to monitor if the company's payables are in line with industry practices.
In summary, Campbell Soup Company's activity ratios show some variability over the periods. The company should continue to monitor and manage its inventory levels, receivables collection, and payables efficiently to enhance operational efficiency and financial performance.
Long-term
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | 3.52 | — | 3.74 | — | 3.87 | 3.38 | 3.66 | 3.31 | 3.86 | 4.13 | 4.37 | 4.15 | 4.01 | 3.82 | 3.61 | 3.75 | 3.80 |
| Total asset turnover | 0.63 | 0.60 | 0.61 | 0.62 | 0.63 | 0.64 | 0.82 | 0.79 | 0.75 | 0.72 | 0.73 | 0.77 | 0.81 | 0.85 | 0.80 | 0.76 | 0.72 | 0.71 | 0.73 | 0.74 |
The Fixed Asset Turnover ratio of Campbell Soup Company Common Stock has shown fluctuations over the periods provided. It ranged from 3.61 to 4.37, indicating the company generated between $3.61 to $4.37 in revenue for every dollar invested in fixed assets. The ratio peaked in January 31, 2023, and has since declined, reaching 3.52 in July 28, 2024.
On the other hand, the Total Asset Turnover ratio fluctuated as well, ranging from 0.60 to 0.85. This ratio signifies how efficiently the company utilizes its total assets to generate sales. The ratio peaked in January 31, 2023, suggesting that for every dollar of assets, the company generated $0.85 in sales. The ratio then declined to 0.63 in January 31, 2025, showing a decrease in asset utilization efficiency.
Overall, the fluctuations in these long-term activity ratios suggest changes in the company's efficiency in generating sales from its fixed and total asset base over the periods analyzed.