J & J Snack Foods Corp (JJSF)

Short-term

Turnover ratios

J & J Snack Foods Corp's activity ratios provide insights into the efficiency of the company's operations in managing its inventory, accounts receivable, accounts payable, and working capital.

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times the company sells and replaces its inventory during a period.
- J & J Snack Foods Corp's inventory turnover has been relatively stable over the past five years, ranging between 6.44 to 7.86, with the latest figure standing at 7.45.
- The consistent inventory turnover suggests that the company effectively manages its inventory levels to meet customer demand.

2. Receivables Turnover:
- The receivables turnover ratio indicates how efficiently the company is collecting payment from customers on credit sales.
- J & J Snack Foods Corp's receivables turnover has shown some fluctuation over the years, with the latest figure at 8.32.
- The increasing trend in receivables turnover suggests that the company is improving its collection efforts and efficiently converting credit sales into cash.

3. Payables Turnover:
- The payables turnover ratio measures how quickly the company pays its suppliers for goods and services purchased on credit.
- J & J Snack Foods Corp's payables turnover has been increasing over the years, reaching 14.45 in the latest period.
- The higher payables turnover indicates that the company is managing its accounts payable effectively by paying off its obligations in a timely manner.

4. Working Capital Turnover:
- The working capital turnover ratio assesses how efficiently the company is utilizing its working capital to generate sales revenue.
- J & J Snack Foods Corp's working capital turnover has generally increased over the years, with the latest figure standing at 5.70.
- The rising trend in working capital turnover implies that the company is effectively utilizing its working capital to support its operations and generate revenue.

Overall, based on the activity ratios analysis, J & J Snack Foods Corp demonstrates efficient management of inventory, receivables, payables, and working capital, which indicates strong operational performance and effective utilization of resources.

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Average number of days

The activity ratios of J & J Snack Foods Corp indicate how efficiently the company manages its inventory, collects its receivables, and pays its payables.

1. Days of Inventory on Hand (DOH):
- The company's average days of inventory on hand have been relatively stable over the past five years, ranging from 46.42 days to 56.66 days.
- A lower DOH is generally considered better as it indicates that the company is selling its inventory quickly, reducing the risk of obsolescence and freeing up working capital.
- J & J Snack Foods Corp's DOH has shown some fluctuations but has trended towards lower levels in recent years, suggesting improved inventory management.

2. Days of Sales Outstanding (DSO):
- The average days of sales outstanding have ranged from 43.86 days to 55.04 days over the past five years.
- A lower DSO indicates that the company is collecting its accounts receivable faster, which improves cash flow and reduces the risk of bad debts.
- The trend for J & J Snack Foods Corp's DSO is mixed, with some fluctuations, suggesting potential areas for improvement in its credit and collection policies.

3. Number of Days of Payables:
- The number of days of payables has shown a declining trend over the past five years, ranging from 25.27 days to 36.48 days.
- A lower number of days of payables indicates that the company is paying its suppliers more quickly, which could strain liquidity but may also improve relationships with suppliers.
- J & J Snack Foods Corp's decreasing trend in the number of days of payables suggests that the company is paying its suppliers more promptly, potentially enhancing vendor relationships at the cost of reduced short-term financing benefits.

Overall, while J & J Snack Foods Corp has demonstrated some improvement in its inventory management and payable practices, there may still be opportunities to enhance its accounts receivable collection efficiency to further optimize its working capital management.

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Long-term

The fixed asset turnover ratio for J & J Snack Foods Corp has been relatively stable over the past five years, ranging between 3.91 and 4.28. This indicates that the company is generating approximately $4 of revenue for every $1 invested in fixed assets, reflecting efficient utilization of these long-term resources.

On the other hand, the total asset turnover ratio has shown some fluctuation over the same period, with values varying from 0.97 to 1.22. Despite the variability, the trend generally suggests an improvement in the company's efficiency in generating revenue from its total assets, indicating a positive utilization of both fixed and current assets.

Overall, the consistent performance of the fixed asset turnover ratio and the improving trend in the total asset turnover ratio indicate that J & J Snack Foods Corp is effectively utilizing its assets to generate sales, which is a positive sign for long-term operational efficiency and financial performance.