JM Smucker Company (SJM)
Days of sales outstanding (DSO)
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 14.10 | 13.43 | 10.98 | 11.56 | 11.10 | 10.39 | 13.94 | 14.28 | 14.27 | 15.60 | 13.40 | 13.25 | 15.24 | 14.00 | 11.99 | 13.94 | 14.99 | 13.51 | 13.99 | 16.06 | |
| DSO | days | 25.89 | 27.18 | 33.25 | 31.56 | 32.87 | 35.11 | 26.19 | 25.55 | 25.57 | 23.40 | 27.23 | 27.56 | 23.94 | 26.07 | 30.43 | 26.19 | 24.34 | 27.01 | 26.10 | 22.72 |
April 30, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 14.10
= 25.89
The analysis of JM Smucker Company's days of sales outstanding (DSO) from July 31, 2020, through April 30, 2025, reveals fluctuations and trends over the observed period. Initially, the DSO was approximately 22.72 days in late July 2020, indicating a relatively short collection period. Subsequently, there was an upward movement, with DSO reaching a peak of approximately 30.43 days in October 2021, suggesting a lengthening in the time it takes to collect receivables.
Between late 2021 and early 2023, the DSO generally stabilized within a range of approximately 23 to 27 days, reflecting relatively consistent receivables collection efficiency during this period. Notably, the DSO decreased to around 23.40 days by January 2023, representing improved receivables management, but then experienced a slight increase and stabilization around 25.55 days by July 2023.
The most significant change occurs in early 2024, where the DSO jumps notably to 35.11 days in January 2024, marking a substantial deterioration in collection efficiency. This upward trend continues during the subsequent quarters, with DSOs recorded at approximately 32.87 days in April 2024, 31.56 days in July 2024, and up to 33.25 days in October 2024. These increases suggest a notable slowdown in receivables collections during this period.
In the most recent data points, the trend appears to revert somewhat, with the DSO decreasing to around 27.18 days in January 2025 and further declining to approximately 25.89 days in April 2025. Despite this improvement, the DSO remains elevated relative to historical lows, indicating ongoing challenges in collection periods but also some recovery.
Overall, the DSO pattern demonstrates periods of stability interspersed with notable increases, particularly starting in early 2024. These fluctuations could be indicative of changes in credit policies, customer payment behaviors, or external economic factors affecting receivable collections. Continuous monitoring and analysis of underlying causes are warranted to manage and optimize the company's cash flow effectively.