JM Smucker Company (SJM)
Payables 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 |
| Payables | US$ in thousands | 1,336,200 | 1,252,700 | 1,250,300 | 1,301,000 | 1,392,600 | 1,231,000 | 1,260,600 | 1,242,600 | 1,193,300 | 1,006,800 | 1,031,000 | 1,041,200 | 1,034,100 | 896,700 | 857,200 | 780,600 | 782,000 | 575,000 | 521,800 | 503,100 |
| Payables turnover | 5.12 | 5.51 | 5.49 | 5.53 | 5.32 | 5.95 | 5.82 | 5.77 | 5.91 | 6.91 | 6.53 | 6.39 | 6.44 | 7.50 | 7.83 | 8.56 | 8.42 | 11.44 | 12.78 | 13.39 |
April 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $6,840,600K ÷ $1,336,200K
= 5.12
The payables turnover ratio for JM Smucker Company has shown fluctuations over the past two years. From the data provided, we can observe that the company's payables turnover ratio has generally been within the range of 5 to 13 times annually.
For the most recent period, the payables turnover ratio was 5.12, which indicates that, on average, the company paid its accounts payable approximately 5.12 times during the year. This suggests that JM Smucker is managing its accounts payable effectively, as a higher turnover ratio typically indicates that the company is paying its suppliers more frequently.
While the payables turnover ratio has been relatively consistent over the past few years, there was a noticeable decrease in the ratio in the most recent period compared to the previous period. This might indicate a slight slowdown in the company's ability to pay its suppliers compared to previous periods.
Overall, JM Smucker Company's payables turnover ratio provides insights into the efficiency of its accounts payable management and the company's relationships with its suppliers. It is important for investors and stakeholders to monitor this ratio over time to assess the company's working capital management and financial health.