JM Smucker Company (SJM)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	6.58	6.99	6.33	6.57	7.33	5.90	5.41	5.46	6.48	6.67	6.12	6.02	6.94	7.49	6.75	6.72	7.36	6.86	6.58	6.65
Receivables turnover	11.10	10.39	13.98	14.30	14.26	15.64	13.44	13.33	15.37	14.12	12.12	14.10	15.16	13.61	14.02	16.05	14.05	15.83	14.41	15.92
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
Working capital turnover	—	—	2.04	15.41	9.77	29.09	42.85	72.96	140.78	24.57	67.55	—	—	—	—	—	20.09	—	—	—

The activity ratios of JM Smucker Company provide insights into the efficiencies of its operational processes.

1. Inventory turnover: JM Smucker has generally maintained a consistent inventory turnover ratio over the periods, ranging between 5.41 and 7.49. This indicates that the company is effectively managing its inventory levels and converting them into sales efficiently.

2. Receivables turnover: The company's receivables turnover ratio has shown some fluctuations but generally remained healthy, varying between 10.39 and 16.05. This suggests that JM Smucker is efficient in collecting revenue from its customers.

3. Payables turnover: The payables turnover ratio for JM Smucker has fluctuated between 5.12 and 13.39, indicating varying levels of efficiency in managing its trade payables. However, the ratios generally show that the company is effectively paying off its suppliers within a reasonable timeframe.

4. Working capital turnover: There are some gaps in the data provided, but the available figures show significant fluctuations in the working capital turnover ratio for JM Smucker. The ratios range from 2.04 to 140.78, indicating varying levels of efficiency in utilizing its working capital to generate sales revenue.

Overall, the activity ratios of JM Smucker Company demonstrate a generally efficient management of inventory, receivables, payables, and working capital, which is reflective of effective operational management practices within the organization.

Average number of days

		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
Days of inventory on hand (DOH)	days	55.43	52.19	57.64	55.52	49.79	61.88	67.53	66.82	56.37	54.69	59.63	60.66	52.57	48.74	54.04	54.35	49.62	53.20	55.45	54.92
Days of sales outstanding (DSO)	days	32.88	35.13	26.12	25.53	25.59	23.33	27.16	27.39	23.74	25.86	30.11	25.89	24.07	26.81	26.04	22.74	25.98	23.06	25.34	22.92
Number of days of payables	days	71.30	66.20	66.43	66.06	68.66	61.36	62.66	63.25	61.75	52.84	55.88	57.13	56.64	48.68	46.61	42.64	43.34	31.91	28.55	27.27

Days of inventory on hand (DOH) measures how efficiently a company manages its inventory. A lower DOH implies quicker turnover of inventory, which can be beneficial as it reduces carrying costs and the risk of obsolescence. JM Smucker's DOH has fluctuated over the periods, ranging from a low of 48.74 days to a high of 67.53 days. The trend seems to be generally stable, with some variations.

Days of sales outstanding (DSO) evaluates how well a company collects its accounts receivable. A lower DSO indicates quicker collection of receivables, improving cash flow. JM Smucker's DSO ranges from 22.74 days to 35.13 days across the periods, displaying some variability. Lower DSO is generally better, and the trend shows a mix of improvement and slight deterioration at times.

Number of days of payables measures how long a company takes to pay its suppliers. A longer period indicates more extended payment terms, which could be beneficial for cash flow management. JM Smucker's days of payables span from 27.27 days to 71.30 days, showing significant variability. A longer period can signify the company's ability to manage its working capital effectively by delaying payments.

Overall, JM Smucker's activity ratios show some fluctuations over the periods, indicating varying efficiencies in managing inventory, collecting receivables, and paying suppliers. It is important for the company to monitor and analyze these ratios continuously to optimize its working capital management and overall financial performance.

Long-term

	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
Fixed asset turnover	2.66	2.73	3.44	3.70	3.81	3.67	3.73	3.77	3.78	3.98	3.97	4.01	4.04	4.25	4.13	4.10	3.93	3.95	3.93	3.95
Total asset turnover	0.40	0.41	0.45	0.58	0.57	0.52	0.51	0.50	0.50	0.50	0.49	0.49	0.50	0.50	0.48	0.47	0.46	0.45	0.45	0.45

The fixed asset turnover ratio for JM Smucker Company has been relatively stable over the period analyzed, ranging from 2.66 to 4.25. This ratio measures the efficiency of the company in generating sales revenue from its investment in fixed assets such as property, plant, and equipment. A higher ratio indicates that the company is generating more sales from its fixed assets, which is generally viewed favorably. JM Smucker's consistent fixed asset turnover suggests that the company is effectively utilizing its fixed assets to generate sales over time.

On the other hand, the total asset turnover ratio for JM Smucker Company has shown more fluctuation, ranging from 0.40 to 0.58. This ratio measures how efficiently the company is using its total assets to generate sales revenue. A higher total asset turnover ratio indicates that the company is generating more sales relative to its total assets. The fluctuations in JM Smucker's total asset turnover ratio may indicate changes in the company's sales volume relative to its total asset base.

In conclusion, while JM Smucker's fixed asset turnover ratio has been relatively stable, indicating efficient utilization of fixed assets, the total asset turnover ratio has shown more variability, suggesting changes in the company's sales efficiency relative to its total asset base. Further analysis of the factors impacting these ratios would provide a deeper understanding of JM Smucker's long-term activity performance.