John B Sanfilippo & Son Inc (JBSS)

Short-term

Turnover ratios

The analysis of John B Sanfilippo & Son Inc.'s activity ratios over the period from June 30, 2021, to June 30, 2025, reveals trends in operational efficiency related to inventory management, receivables collection, payables obligations, and working capital utilization.

Inventory Turnover:
The inventory turnover ratio demonstrates fluctuations over the period. It commenced at 4.55 in 2021, decreased to 3.69 in 2022, then increased to 4.56 in 2023. Subsequently, it declined again to 4.34 in 2024 and further to 3.55 in 2025. The oscillation suggests periods of both improvement and slowdown in inventory management efficiency. The peak in 2023 indicates a period of relatively improved inventory utilization, whereas the decline towards 2025 reflects potential stockholding inefficiencies or increased inventory levels relative to sales.

Receivables Turnover:
The receivables turnover ratio exhibits an overall upward trend, starting at 12.93 in 2021, rising to 13.73 in 2022, and remaining stable at 13.74 in 2023. Thereafter, it declined slightly to 12.56 in 2024 before increasing to 14.44 in 2025. These movements suggest that the company's collection efforts became more effective over time, especially evident in the 2025 increase, which indicates faster receivables collection and a more efficient accounts receivable management.

Payables Turnover:
The payables turnover ratio shows a consistent upward trajectory from 13.78 in 2021 to a peak of 18.46 in 2023. Following this peak, it decreased slightly to 15.96 in 2024 and further to 14.94 in 2025. The rising trend through 2023 points to shorter periods for settling payables, implying more aggressive payment practices or improved cash flow management. The subsequent decline indicates a possible extension of payment periods or a strategic shift in supplier payment policies.

Working Capital Turnover:
The working capital turnover ratio exhibits minor fluctuations but generally remains within a close range. It decreased from 6.87 in 2021 to 5.96 in 2022 and to 5.92 in 2023, then increased slightly to 6.34 in 2024 before decreasing again to 5.82 in 2025. These slight variations indicate relatively stable utilization of working capital in relation to sales. The dip in 2022 and 2023 may suggest a slight decline in operational efficiency, whereas the slight uptick in 2024 reflects a modest improvement before declining again in 2025.

Summary:
Overall, the activity ratios indicate that John B Sanfilippo & Son Inc. has experienced periods of enhanced efficiency, notably in receivables collection and inventory management around 2023-2025. The fluctuations in inventory and working capital turnover ratios point to varying operational strategies, possibly influenced by market conditions or internal policy adjustments. The payables turnover trend shows an initial tightening of payment cycles, followed by a moderate easing, reflecting possible strategic payment planning. Collectively, these ratios portray a company actively managing its operational cycle with notable agility, though some efficiency metrics have experienced recent declines.

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Average number of days

The analysis of John B Sanfilippo & Son Inc’s activity ratios over the period from June 30, 2021, to June 30, 2025, reveals notable trends and patterns in inventory management, receivables collection, and payables payments.

Days of Inventory on Hand (DOH):
The company’s inventory holding period demonstrated fluctuation during the observed years. It increased significantly from approximately 80.21 days in 2021 to a peak of 98.87 days in 2022. This indicates that inventory was held longer during this period, potentially reflecting strategic inventory accumulation or supply chain complexities. Subsequently, there was a notable reduction to approximately 80.10 days in 2023, suggesting improved inventory turnover. However, the ratio rose again to over 84 days in 2024 and reached approximately 102.82 days in 2025, indicating a substantial increase in the duration inventory remains on hand. The rising trend from 2023 onwards may imply a slowdown in inventory turnover, which could impact working capital efficiency or reflect changing inventory management policies.

Days of Sales Outstanding (DSO):
The receivables collection period remained relatively stable throughout the period, fluctuating narrowly between approximately 26.58 days in 2022 and 26.56 days in 2023, indicating consistent credit and collection policies. In 2024, DSO increased slightly to approximately 29.07 days, which may suggest a modest extension in payment terms, possible collection challenges, or deliberate policy shifts. Notably, in 2025, the DSO decreased to roughly 25.27 days, indicating an improvement in receivables collection efficiency relative to the previous year. Overall, the DSO figures suggest stable receivables management with some variability that warrants monitoring.

Number of Days of Payables:
The payables period shows a decreasing trend from approximately 26.48 days in 2021 to 19.77 days in 2023, indicating that the company was paying its suppliers more promptly during this period. Conversely, in 2024, the payables period increased slightly to around 22.87 days, and further to approximately 24.43 days in 2025. The upward movement in payables duration, particularly in the later years, could reflect a strategic decision to extend payment terms temporarily or changes in supplier relationships.

Summary:
Overall, the activity ratios depict a company experiencing periods of inventory accumulation (notably in 2022 and 2025), stable or improved receivables collection, and a tendency toward extending payables slightly in recent years. The increase in days of inventory combined with fluctuating payables suggests a possible shift toward less optimized working capital management in the later years. Conversely, the improvement in receivables collection efficiency in 2025 indicates some positive adjustments in cash flow management. Continuous monitoring of these ratios is advisable to ensure operational efficiencies are maintained and cash flow is optimized.

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Long-term

The analysis of John B Sanfilippo & Son Inc.'s long-term activity ratios reveals insights into the company's efficiency in utilizing its fixed assets and total assets over the period from June 30, 2021, to June 30, 2023.

The Fixed Asset Turnover ratio, which measures how effectively the company is using its fixed assets to generate sales, increased from 6.27 in 2021 to 7.09 in 2022, indicating an improvement in asset utilization. However, the ratio slightly declined to 7.04 in 2023, suggesting a marginal reduction in efficiency, although it remains high and relatively stable compared to earlier periods.

The Total Asset Turnover ratio, which reflects the overall efficiency in using all assets to generate sales, remained relatively stable between 2021 and 2022 at approximately 2.14 and 2.15, respectively. There was a notable increase to 2.35 in 2023, indicating an enhancement in the company's overall asset utilization efficiency during that period. However, this ratio experienced a decrease in subsequent years—dropping to 2.07 in 2024 and further to 1.85 in 2025—implying a declining trend in overall asset efficiency, which could be attributable to increased asset base or decreased sales productivity.

In sum, while the fixed asset turnover ratio remained relatively high and steady with slight fluctuations, the total asset turnover ratio showed an improvement in 2023 followed by a downward trajectory in the subsequent years. This pattern suggests that the company temporarily enhanced its overall asset efficiency but faces challenges in maintaining that level of productivity in the longer term.