JM Smucker Company (SJM)
Receivables turnover
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,176,400 | 8,522,300 | 8,066,900 | 8,091,800 | 7,763,000 |
| Receivables | US$ in thousands | 736,500 | 597,600 | 524,700 | 533,700 | 551,400 |
| Receivables turnover | 11.10 | 14.26 | 15.37 | 15.16 | 14.08 |
April 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $8,176,400K ÷ $736,500K
= 11.10
The receivables turnover ratio measures how effectively JM Smucker Company is able to collect payments from its customers. A higher receivables turnover indicates that the company is efficient in converting its accounts receivable into cash.
Over the past five years, JM Smucker Company's receivables turnover has fluctuated. In the most recent fiscal year ending April 30, 2024, the company's receivables turnover ratio was 11.10, down from 14.26 in the prior year. This decrease may suggest that the company took longer to collect payments from its customers in the most recent year.
Comparing to the previous three years, the receivables turnover ratio has been relatively stable, ranging between 14.08 and 15.37. This stability indicates that JM Smucker Company maintained a consistent level of efficiency in collecting payments from customers during those years.
It is important to note that a declining trend in receivables turnover may raise concerns about the company's credit policies, collection procedures, or the creditworthiness of its customers. JM Smucker Company should closely monitor its receivables turnover ratio to ensure efficient management of its accounts receivable and cash flow.