JM Smucker Company (SJM)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,341,400 | 5,313,300 | 5,411,500 | 5,240,800 | 5,063,300 | 5,213,300 | 5,267,700 | 5,557,300 | 5,727,400 | 5,652,100 | 5,565,600 | 5,400,100 | 5,298,200 | 5,115,600 | 5,008,900 | 4,886,200 | 4,864,000 | 4,983,100 | 4,928,100 | 4,916,100 |
| Payables | US$ in thousands | 1,288,700 | 1,133,300 | 1,233,800 | 1,244,100 | 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 |
| 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 |
April 30, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,341,400K ÷ $1,288,700K
= 4.14
The payables turnover ratio for JM Smucker Company demonstrates notable fluctuations over the specified period from July 31, 2020, through April 30, 2025. Initially, the ratio was relatively high at 6.30 in July 2020, indicating a rapid payment cycle to suppliers. Subsequently, the ratio experienced a consistent decline, reaching a low point of approximately 3.79 in April 2024, which implies an extension in the average time taken to pay suppliers or possibly a change in payment terms or supplier relationships.
Following this trough, the payables turnover showed signs of slight recovery, increasing to 4.21 in July 2024 and further to approximately 4.39 by October 2024. Moving toward the end of the observed period, the ratio increased to 4.69 in January 2025, suggesting a modest acceleration in payments, although it remained below the initial levels observed in 2020.
Overall, the trend indicates a gradual elongation of the payables period over the majority of the period, which could reflect strategic changes such as extended payment terms, better cash flow management, or shifts in supplier agreements. The recent uptick suggests a potential shift toward faster payments or an adjustment in payment strategies. The fluctuations highlight an evolving accounts payable management approach, with the ratio remaining within a steady range, typically between approximately 3.79 and 6.30, over the nearly five-year span.