JM Smucker Company (SJM)
Fixed asset turnover
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,176,400 | 8,522,300 | 8,066,900 | 8,091,800 | 7,763,000 |
| Property, plant and equipment | US$ in thousands | 3,072,700 | 2,239,500 | 2,131,700 | 2,001,500 | 1,969,400 |
| Fixed asset turnover | 2.66 | 3.81 | 3.78 | 4.04 | 3.94 |
April 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $8,176,400K ÷ $3,072,700K
= 2.66
The fixed asset turnover ratio for JM Smucker Company has exhibited a declining trend over the past few years. From 4.04 in April 2021, it decreased to 3.78 in April 2022, and further to 3.81 in April 2023. However, there was a significant drop to 2.66 in April 2024.
This decreasing trend may indicate that the company is generating less revenue relative to its investment in fixed assets over the years. A lower fixed asset turnover ratio suggests that JM Smucker's fixed assets are less productive in generating sales compared to previous periods.
It is important for JM Smucker Company to closely monitor and analyze the reasons behind this decline in fixed asset turnover to ensure efficient utilization of its fixed assets and improve overall operational efficiency.