JM Smucker Company (SJM)
Inventory turnover
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,341,400 | 5,063,300 | 5,727,400 | 5,298,200 | 4,864,000 |
| Inventory | US$ in thousands | 1,209,400 | 1,038,900 | 1,009,800 | 1,089,300 | 959,900 |
| Inventory turnover | 4.42 | 4.87 | 5.67 | 4.86 | 5.07 |
April 30, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,341,400K ÷ $1,209,400K
= 4.42
The inventory turnover ratios for JM Smucker Company over the specified periods exhibit notable fluctuations. As of April 30, 2021, the inventory turnover stood at 5.07, indicating the company sold and replaced its inventory approximately 5.07 times during that fiscal year. This ratio slightly decreased to 4.86 by April 30, 2022, suggesting a marginal slowdown in inventory efficiency.
Moving into 2023, there was a significant improvement, with the ratio rising to 5.67—representing an enhanced ability to convert inventory into sales within the fiscal year, which could reflect improved sales performance, better inventory management, or both. However, this trend did not persist into the following year; by April 30, 2024, the ratio declined to 4.87, signaling a reduction in inventory turnover efficiency but still remaining above the 2022 level.
The most recent data point, as of April 30, 2025, shows a further decrease to 4.42. This downward trend indicates a continued reduction in inventory turnover, suggesting the company may be holding onto inventory longer or experiencing slower sales relative to previous years.
Overall, the analysis reflects a peak in inventory management efficiency in 2023, followed by a decline in subsequent years. The recent ratios suggest that JM Smucker Company is currently experiencing a lower inventory turnover rate compared to the earlier periods prior to 2023, which may warrant further investigation into factors such as changes in sales dynamics, inventory policies, or market conditions.