JM Smucker Company (SJM)
Number of days of payables
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 5.12 | 5.32 | 5.91 | 6.47 | 8.43 | |
| Number of days of payables | days | 71.33 | 68.66 | 61.72 | 56.41 | 43.32 |
April 30, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.12
= 71.33
The number of days of payables for JM Smucker Company has been increasing over the past five years, indicating a lengthening of the time it takes for the company to pay its suppliers. In the most recent year, ending April 30, 2024, the number of days of payables stood at 71.33 days, compared to 68.66 days in the prior year and a notable increase from 43.32 days five years ago.
This trend suggests that JM Smucker Company may be taking longer to settle its accounts payable obligations, which could potentially indicate a shift towards a more conservative cash management approach or negotiating better payment terms with suppliers. However, a significant increase in the number of days of payables could also raise concerns about the company's liquidity and ability to meet its short-term financial obligations in a timely manner.
Overall, a careful analysis of the company's payables management practices, cash flow position, and relationship with suppliers would be necessary to fully understand the implications of the increasing number of days of payables for JM Smucker Company.