John B Sanfilippo & Son Inc (JBSS)

Short-term

Turnover ratios

The activity ratios of John B. Sanfilippo & Son Inc. over the period provided reveal several trends and insights into the company's operational efficiency, inventory management, receivables collection, and payables settlement practices.

Inventory Turnover:
The company's inventory turnover fluctuated within a range approximately between 3.50 and 4.66 times per year. During the pandemic-affected years ending in early 2021, the turnover averaged around 4.4, indicating moderate inventory circulation. A noticeable decline occurred in fiscal year 2022, where turnover dipped to approximately 3.58 to 4.08, suggesting an accumulation of inventory or slower sales. Subsequently, a mild recovery is observed, with ratios reaching up to 4.66 in September 2024. The decrease towards March 2025 to approximately 3.50 may reflect increased inventory levels or changes in sales dynamics.

Receivables Turnover:
Receivables turnover remained relatively stable, mostly fluctuating between approximately 12.06 and 14.86 times annually. This consistency indicates that the company generally collects receivables within roughly 24 to 30 days, aligning with standard credit policies. An upward trend is seen moving towards early 2025, with the ratio reaching 14.86, implying improved collections or shorter receivable periods.

Payables Turnover:
Payments to suppliers, as indicated by payables turnover, show significant variability. The ratio ranged from a low of about 11.19 to a high of approximately 19.18. Increased ratios suggest shorter periods to settle payables, while lower ratios imply extended credit terms. Notably, there was a marked increase in 2023, reaching 19.18 in March, possibly reflecting tighter payment terms or faster payment cycles, followed by a decline in subsequent periods.

Working Capital Turnover:
This ratio indicates how efficiently the company utilizes its working capital to generate sales. The data shows a declining trend from about 7.84 in the September 2021 quarter to a low of approximately 4.50 in June 2025. Periods of higher ratios (around 7.7–7.8) suggest strong utilization of working capital, whereas the decline toward June 2025 indicates reduced efficiency or potentially increased working capital levels relative to sales.

Summary:
Over the observed period, John B. Sanfilippo & Son Inc. has demonstrated relatively stable receivables collection efficiency, with some improvement evident towards 2025. Inventory turnover has experienced some decline, especially in fiscal 2022, indicating possible inventory build-up or slower sales, but shows signs of recovery in later periods. Payables turnover has been highly variable, likely reflecting shifts in credit terms or payment strategies. Lastly, the declining working capital turnover ratio suggests the company may be utilizing its working capital less effectively in recent periods or facing increased working capital requirements. Overall, these ratios collectively paint a picture of fluctuating operational efficiency, with some periods of tighter management and others indicating potential opportunities for process improvement.

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Average number of days

The activity ratios for John B Sanfilippo & Son Inc, as measured by days of inventory on hand (DOH), days of sales outstanding (DSO), and days of payables, exhibit notable trends over the period from March 2021 through June 2025.

Inventory Management (Days of Inventory on Hand):
The company's inventory holding period shows variability over the analyzed period. From March 2021 through the end of 2021, DOH increased from approximately 81.82 days to around 86.87 days, with a peak of 91.89 days in December 2021. This indicates a gradual elongation in inventory turnover, possibly reflecting inventory buildup or production adjustments. In 2022, DOH fluctuated, reaching a high of roughly 101.98 days in March, then declining to approximately 78.87 days in December 2022, suggesting an improvement in inventory turnover efficiency. During 2023, DOH maintained a relatively stable range, oscillating around the mid-80s days. In 2024, a slight increase was observed, with DOH reaching 94.59 days in March before decreasing again to approximately 78.39 days in September. The trend toward 2025 shows a significant increase, with DOH reaching over 104 days in March and 102 days in June, indicating a slowdown in inventory turnover or potential accumulation.

Accounts Receivable Collection (Days of Sales Outstanding):
The DSO remained relatively stable throughout the period, generally fluctuating between approximately 24.75 and 30.25 days. The lowest readings, around 24.75 days in December 2021 and March 2022, suggest efficient receivables management, while the higher values such as 30.25 days in September 2021 indicate periodic extensions or delays in collections. The most recent data points reflect a slight decrease, with DSO at around 24.56 days in March 2025, suggesting improved collection efficiency.

Accounts Payable Management (Days of Payables):
The number of days payable shows a variable pattern. Early in the period, payables ranged from around 19 to 32 days, with a notable peak of 32.62 days in December 2021. This suggests periods where the company took longer to settle obligations. In 2022 and into 2023, payables generally hovered in the low twenties to high teens, reflecting shorter payment cycles or improved cash management. The most recent data indicates a temporary increase to around 29.51 days in December 2023, followed by stabilization near 24 to 25 days. The latest figure, approximately 20.99 days in March 2025, indicates a tendency toward shorter payment periods, possibly reflecting tighter cash management or vendor negotiation.

Overall Summary:
The activity ratios demonstrate a pattern of fluctuating operational efficiency, with inventory turnover slowing notably by early 2025, as evidenced by the increased DOH. Receivables collection appears consistent and efficient throughout the period, with slight improvements in recent months. Payables management has experienced periods of extension but generally maintains a cycle of approximately 20 to 25 days, aligning with typical trade credit terms. The combined observations may suggest a strategic shift towards holding inventory longer while maintaining stable receivables, alongside efforts to optimize payables and improve cash flow management in recent periods.

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Long-term

The analysis of John B Sanfilippo & Son Inc’s long-term activity ratios over the specified period reveals insights into its asset utilization efficiency, particularly regarding fixed assets and total assets.

Starting with the Fixed Asset Turnover ratio, the data indicates a relatively stable but gradually increasing trend from 6.59 on March 31, 2021, to a peak of 7.49 on March 31, 2023. This suggests an improvement in the efficiency with which the company utilizes its fixed assets to generate sales during this period. The gradual rise implies better asset management or investment in more productive fixed assets, enhancing sales output per dollar of fixed assets.

Conversely, the Total Asset Turnover ratio depicted in the data exhibits more fluctuations, with values oscillating from 2.18 on March 31, 2021, to a low of 1.85 on June 30, 2025. Despite some short-term increases, the overall trend from 2021 onward appears to be slightly declining over time. This indicates a reduction in overall asset utilization efficiency, potentially attributable to asset base expansion without proportional increases in sales, or changes in operational efficiency.

In summary, while the Fixed Asset Turnover ratio demonstrates a positive trend indicating improved fixed asset efficiency, the Total Asset Turnover ratio shows a slight downward trajectory, signifying declining overall asset utilization effectiveness over the longer term. These contrasting patterns may reflect strategic shifts in asset deployment, operational changes, or variations in sales performance relative to total assets.