JM Smucker Company (SJM)
Fixed asset turnover
| 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 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,176,400 | 8,203,900 | 8,216,100 | 8,468,800 | 8,522,300 | 8,352,500 | 8,192,500 | 8,062,500 | 8,066,900 | 7,949,900 | 7,991,000 | 7,978,100 | 8,091,800 | 8,235,300 | 8,087,600 | 7,987,200 | 7,746,000 | 7,556,100 | 7,525,500 | 7,543,400 |
| Property, plant and equipment | US$ in thousands | 3,072,700 | 3,004,900 | 2,389,300 | 2,289,600 | 2,239,500 | 2,274,300 | 2,198,600 | 2,138,800 | 2,131,700 | 1,995,500 | 2,015,200 | 1,988,400 | 2,001,500 | 1,937,800 | 1,956,300 | 1,948,600 | 1,969,400 | 1,911,700 | 1,915,500 | 1,909,200 |
| Fixed asset turnover | 2.66 | 2.73 | 3.44 | 3.70 | 3.81 | 3.67 | 3.73 | 3.77 | 3.78 | 3.98 | 3.97 | 4.01 | 4.04 | 4.25 | 4.13 | 4.10 | 3.93 | 3.95 | 3.93 | 3.95 |
April 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $8,176,400K ÷ $3,072,700K
= 2.66
The fixed asset turnover ratio for JM Smucker Company has shown a fluctuating trend over the past few years, ranging from 2.66 to 4.25. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of fixed assets, reflecting efficient utilization of its property, plant, and equipment.
From the data provided, we can observe that the fixed asset turnover ratio has generally been on an upward trajectory from October 2019 to October 2023, peaking at 4.25 in January 2021. This suggests that JM Smucker Company was effectively utilizing its fixed assets to generate sales during this period.
However, there was a slight decline in the fixed asset turnover ratio in the most recent periods, indicating a potential decrease in the efficiency of the company's fixed asset utilization. It is important for the company to monitor and analyze this trend to ensure optimal utilization of its fixed assets and maintain or improve profitability.
Overall, JM Smucker Company has demonstrated a generally healthy fixed asset turnover ratio, which indicates efficient management of its fixed assets to generate revenue. The company should continue to focus on maximizing the productivity of its fixed assets to drive sustainable growth and profitability in the future.