JM Smucker Company (SJM)
Payables 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 |
| Payables | US$ in thousands | 1,288,700 | 1,336,200 | 1,392,600 | 1,193,300 | 1,034,100 |
| Payables turnover | 4.14 | 3.79 | 4.11 | 4.44 | 4.70 |
April 30, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,341,400K ÷ $1,288,700K
= 4.14
The payables turnover ratio for JM Smucker Company demonstrates a consistent downward trend over the observed period from April 30, 2021, to April 30, 2025. Specifically, the ratio declined from 4.70 times in 2021 to 4.44 times in 2022, further decreasing to 4.11 times in 2023, and reaching 3.79 times in 2024. A slight increase to 4.14 times is noted in 2025.
This declining trajectory indicates that the company is taking longer to settle its accounts payable obligations over time. A decreasing payables turnover ratio may imply either a strategic extension of payment terms, improved supplier relationships allowing for longer payment periods, or potential cash flow management practices aimed at conserving liquidity. Conversely, it could also suggest growing delays or difficulties in settling obligations.
In summary, the decreasing payables turnover ratio suggests a gradual extension in the period JM Smucker Company holds its payables, reflecting changes in its payback policy or operational cash management strategies over the past several years.