John B Sanfilippo & Son Inc (JBSS)

Short-term

Turnover ratios

The activity ratios of John B Sanfilippo & Son Inc reflect its operational efficiency and effectiveness in managing its resources.

1. Inventory turnover:
The inventory turnover ratio measures how many times a company sells and replaces its inventory over a period. The trend for John B Sanfilippo & Son Inc shows fluctuations but generally indicates that the company is managing its inventory efficiently. The decrease in 2022 followed by an increase in subsequent years suggests improvements in managing inventory levels.

2. Receivables turnover:
The receivables turnover ratio indicates how efficiently a company is collecting payments from its customers. John B Sanfilippo & Son Inc has a consistently high receivables turnover ratio over the years, indicating the company's effective credit and collection policies. The slight decrease in 2021 followed by stability in subsequent years could be a sign of stable customer credit practices.

3. Payables turnover:
The payables turnover ratio measures how efficiently a company pays its suppliers in a given period. John B Sanfilippo & Son Inc shows fluctuations in payables turnover, but the general trend indicates that the company is managing its payables effectively. The decrease in payables turnover in 2023 followed by an increase in subsequent years could reflect changes in supplier payment terms.

4. Working capital turnover:
The working capital turnover ratio assesses how efficiently a company utilizes its working capital to generate sales. John B Sanfilippo & Son Inc has a relatively stable working capital turnover ratio over the years, indicating that the company effectively manages its working capital to generate sales. The slight fluctuations in the ratio suggest minor changes in working capital efficiency but overall stability in operations.

Overall, the activity ratios of John B Sanfilippo & Son Inc suggest that the company is efficiently managing its inventory, receivables, payables, and working capital to support its operational activities and generate sales.

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Average number of days

The activity ratios of John B Sanfilippo & Son Inc provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH): This ratio measures how many days, on average, the company holds its inventory before selling it. Over the past five years, the DOH has fluctuated, ranging from 80.10 days to 98.87 days. In 2024, the DOH increased to 84.14 days, indicating that the company held inventory for a longer period compared to the previous year. A lower DOH is generally desirable as it signifies efficient inventory management.

2. Days of Sales Outstanding (DSO): The DSO ratio measures the average number of days it takes for the company to collect payment after making a sale. The trend for John B Sanfilippo & Son Inc's DSO over the past five years has been relatively stable, with minor fluctuations between 26.56 days to 29.07 days. In 2024, the DSO increased to 29.07 days, indicating that the company took longer to collect payments from customers that year.

3. Number of Days of Payables: This ratio assesses the average number of days that the company takes to pay its suppliers. The trend in the number of days of payables for John B Sanfilippo & Son Inc has varied over the past five years, with fluctuations between 18.82 days to 26.48 days. In 2024, the number of days of payables increased to 22.87 days, suggesting that the company took slightly longer to settle its payables compared to the previous year.

Overall, analyzing these activity ratios together provides a comprehensive view of the efficiency of John B Sanfilippo & Son Inc's operations in managing inventory, collecting receivables, and paying suppliers. Further analysis and comparison with industry benchmarks can help in assessing the company's performance and identifying areas for potential improvement.

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Long-term

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. John B Sanfilippo & Son Inc's fixed asset turnover ratio has exhibited some fluctuations over the past five years, ranging from 6.44 to 7.38. The relatively high values indicate that the company has been effectively utilizing its fixed assets to generate revenue, with a peak performance in 2023.

On the other hand, the total asset turnover ratio reveals how well the company is using all its assets to generate sales. John B Sanfilippo & Son Inc's total asset turnover ratio has ranged from 2.07 to 2.35 over the five-year period. This ratio indicates that the company has been able to generate sales efficiently relative to its total assets, with a slight decline observed in 2024 compared to the highest performance in 2023.

Overall, the company has shown a consistent ability to generate revenue efficiently in relation to both fixed and total assets over the past five years, although there have been some fluctuations in performance. The high fixed asset turnover ratios suggest effective management of fixed assets, while the total asset turnover ratios indicate efficient utilization of all assets to drive sales.