JM Smucker Company (SJM)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 6,840,600 | 6,907,200 | 6,869,600 | 7,188,600 | 7,403,000 | 7,322,500 | 7,342,700 | 7,171,200 | 7,053,500 | 6,954,700 | 6,734,800 | 6,652,000 | 6,664,300 | 6,723,500 | 6,713,000 | 6,681,800 | 6,586,100 | 6,577,700 | 6,670,000 | 6,734,800 |
| Inventory | US$ in thousands | 1,038,900 | 987,600 | 1,084,900 | 1,093,400 | 1,009,800 | 1,241,500 | 1,358,400 | 1,312,800 | 1,089,300 | 1,042,100 | 1,100,200 | 1,105,500 | 959,900 | 897,900 | 993,800 | 995,000 | 895,300 | 958,800 | 1,013,300 | 1,013,300 |
| Inventory turnover | 6.58 | 6.99 | 6.33 | 6.57 | 7.33 | 5.90 | 5.41 | 5.46 | 6.48 | 6.67 | 6.12 | 6.02 | 6.94 | 7.49 | 6.75 | 6.72 | 7.36 | 6.86 | 6.58 | 6.65 |
April 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,840,600K ÷ $1,038,900K
= 6.58
The inventory turnover ratio for JM Smucker Company has shown fluctuation over the past several quarters. This ratio indicates how efficiently the company is managing its inventory by measuring the number of times inventory is sold and replaced during a specific period.
The average inventory turnover for JM Smucker Company over the most recent 20 quarters is approximately 6.64 times per year. This suggests that, on average, the company’s inventory is sold and replaced almost 6.64 times annually.
The trend in the inventory turnover ratio shows some variability, ranging from a low of 5.41 in January 2023 to a high of 7.49 in January 2021. Generally, the company has maintained a relatively consistent level of inventory turnover, with minor fluctuations quarter by quarter.
A higher inventory turnover ratio typically indicates efficient management of inventory, as it suggests that the company is selling and restocking its inventory more frequently. On the other hand, a lower inventory turnover ratio may indicate excess inventory levels or potential difficulties in selling products.
Overall, JM Smucker Company’s inventory turnover ratio has been reasonable and relatively stable over the past few years, reflecting effective inventory management practices.