Campbell’s Co (CPB)

Short-term

Turnover ratios

The presented activity ratios for Campbell’s Co demonstrate the company’s operational efficiency in managing inventories, receivables, payables, and working capital over multiple periods.

Inventory Turnover Ratio: The ratio fluctuates within a narrow band, generally remaining between approximately 5.00 and 6.45 times. Notably, there is an upward trend from July 2022 to January 2024, reaching a peak of 6.45 times, indicating an improved rate of inventory sales relative to stock levels. Subsequently, the ratio stabilizes around 5.50 to 5.80, suggesting consistent inventory management with no significant accumulation or excessive stockholding.

Receivables Turnover Ratio: The ratio varies considerably, beginning at a high of 15.63 times in July 2022 but declining to around 11.58 times by October 2024 before rising again to 15.31 in April 2025. The increase in recent periods reflects improved receivables collection efficiency, whereas the lower ratios observed mid-period suggest a period of extended receivables collection, potentially impacting liquidity.

Payables Turnover Ratio: This ratio exhibits some variability, generally oscillating between approximately 4.68 and 5.88 times. An upward trend is observed towards the end of the period, with the ratio reaching 5.88 in January 2024. Higher payables turnover indicates quicker payment to suppliers, which may suggest a shift toward shorter credit terms or improved cash flow management.

Working Capital Turnover: The ratio is only reported for two periods, with notably high values of 682.86 and 710.57 in January 2024. These elevated figures imply that the company is efficiently utilizing its working capital to generate sales, although the absence of data for other periods limits a comprehensive trend analysis.

Summary: Overall, the activity ratios indicate that Campbell’s Co demonstrates a stable inventory management approach with consistent turnover rates, significant improvements in receivables collection efficiency in recent periods, and a trend towards faster payments to suppliers. The exceptionally high working capital turnover ratio in early 2024 underscores effective utilization of working capital, though limited data restricts a fuller assessment of this indicator over time.

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Average number of days

The activity ratios for Campbell’s Co, focusing on the days of inventory on hand (DOH), days of sales outstanding (DSO), and days of payables, demonstrate several notable trends and characteristics over the analyzed period.

Days of Inventory on Hand (DOH):
The DOH figures generally fluctuate within a range spanning approximately 56 to 73 days. Initially, from July 2022 to January 2023, the inventory days showed a decline, reaching a low of around 59.25 days in January 2023, indicating efficiency improvements in inventory management. Subsequently, there was a modest increase, peaking at about 73 days in July 2023, before decreasing again to roughly 56.55 days in January 2024. Following this, inventory days stabilized around mid-60s before rising again in October 2024. The forecasted data into July 2025 suggests a potential stabilization or slight increase, but the full year’s figure remains unspecified. Overall, the pattern indicates periods of both inventory accumulation and reduction, with a tendency toward stabilization in recent periods.

Days of Sales Outstanding (DSO):
The DSO ratios reflect the time taken by the company to collect receivables, with values ranging approximately from 19.7 days to 31.5 days. The lowest receivables collection period was observed in April 2023 at about 19.7 days, indicating efficient cash collection during that period. Prior to that, DSO values fluctuated within the mid-20s, with an increase noted in October 2024 (about 31.5 days), suggesting a lengthening in the receivables collection cycle. The recent data into April 2025 shows a slight decrease to approximately 23.85 days, implying some improvement. The overall trend indicates a relatively short and stable collection period, with occasional increases that could reflect seasonality or temporary shifts in customer payment behaviors.

Days of Payables:
The company's payables period varied between approximately 62 and 78 days over the analyzed period. Early periods indicate a longer payables cycle, peaking at around 78 days in July 2022, with subsequent fluctuations but generally remaining within the 62–74 days range. Toward the later periods, the payable days appear to approximate around 62–66 days, with some increase to 72 days observed in October 2024. This suggests the company tends to extend its payment terms within a moderate range and occasionally lengthens the period, possibly to optimize cash flow. The data for July 2025 is not available, but previous trends imply that the payables cycle could maintain stability or experience slight elongation.

Summary:
Overall, Campbell’s Co demonstrates a generally stable operating cycle characterized by moderate inventory holding periods, efficient receivables collection, and a controlled but variable payables period. The fluctuations suggest active management of working capital, with periodic adjustments likely driven by seasonal factors, inventory replenishment strategies, or credit terms with suppliers and customers. The balancing of these ratios indicates an effort to optimize cash flow and operational efficiency, though occasional increases in inventory and payable days warrant ongoing monitoring to ensure the sustainability of working capital management.

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Long-term

The analysis of Campbell’s Co long-term activity ratios indicates a nuanced perspective on the company's asset utilization efficiency over time, particularly focusing on the fixed asset turnover and total asset turnover ratios.

Starting with the Fixed Asset Turnover, there is a general upward trend from July 2022 through January 2023, rising from 3.61 to a peak of 4.37 in January 2023. This suggests an improving utilization efficiency of fixed assets, potentially linked to investments in asset management strategies or higher revenue generation relative to fixed asset base during this period. Post-January 2023, the ratio exhibits fluctuations and a gradual decline, reaching approximately 3.66 by October 2023, and further down to approximately 3.52 by July 2024. These fluctuations could indicate varying degrees of fixed asset productivity, perhaps due to changes in capital expenditure, asset revaluation, or shifts in operational focus.

Regarding the Total Asset Turnover, the ratio demonstrates an overall upward trajectory from July 2022 to April 2023, increasing from 0.71 to a peak of 0.85 in January 2023. This suggests that the company became more efficient in using its total assets to generate sales during this period. After January 2023, the ratio experiences some decline, falling to around 0.61 by July 2024, but later shows signs of recovery, reaching 0.69 in April 2025. The downward trend after early 2023 may reflect periods of increased asset base or reduced sales efficiency, while the subsequent rebound suggests improved asset utilization.

Overall, the data indicates that Campbell’s Co initially improved its efficiency in utilizing both fixed and total assets during the first half of the observed period. However, the subsequent periods display fluctuations, signaling periods of diminished efficiency followed by partial recovery. These variations could align with strategic asset investments, operational adjustments, or market conditions affecting sales productivity relative to assets. The company’s asset utilization efficiency appears to be cyclical, with periods of optimization interspersed with periods of relative under-utilization, emphasizing the importance of ongoing management of asset deployment and operational efficiency.