JM Smucker Company (SJM)
Number of days of payables
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 4.14 | 4.69 | 4.39 | 4.21 | 3.79 | 4.16 | 4.21 | 4.27 | 4.11 | 4.59 | 4.42 | 4.35 | 4.44 | 5.08 | 4.86 | 4.69 | 4.70 | 5.56 | 5.75 | 6.30 | |
| Number of days of payables | days | 88.06 | 77.85 | 83.22 | 86.65 | 96.32 | 87.71 | 86.63 | 85.45 | 88.75 | 79.50 | 82.67 | 83.99 | 82.21 | 71.84 | 75.13 | 77.78 | 77.60 | 65.68 | 63.49 | 57.96 |
April 30, 2025 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 4.14
= 88.06
The analysis of JM Smucker Company's number of days of payables over the period from July 2020 to April 2025 reveals an overall trend of increasing payment terms toward suppliers, with some fluctuations. Initially, as of July 31, 2020, the company's payables period was approximately 57.96 days, indicating relatively prompt payments to suppliers. This period gradually increased over subsequent quarters, reaching its peak at 96.32 days by April 30, 2024. Throughout this period, the company maintained a generally upward trajectory in days payable, signaling a tendency towards longer payment cycles.
Between July 2020 and April 2024, the days payable increased substantially, with notable fluctuations. For instance, there were periods of stabilization around 75-85 days, punctuated by sharp increases, such as the rise from 83.99 days in July 2022 to 88.75 days in April 2023, as well as the record high at 96.32 days in April 2024. Following this peak, the days payable showed some variability, decreasing slightly to 86.65 days by July 2024 and further to 83.22 days by October 2024. Subsequently, the figure dipped to 77.85 days in January 2025 before rising again to 88.06 days as of April 2025.
This pattern indicates a strategic management of payment terms, potentially aimed at optimizing cash flow or managing supplier relationships. The extension of days payable over time may suggest the company's effort to preserve liquidity or leverage supplier credit terms more favorably; however, maintaining extended payment periods also warrants attention to potential supplier relations and supply chain stability. Overall, these fluctuations and upward trend in days payables reflect a deliberate approach to managing payables over the analyzed period.