JM Smucker Company (SJM)
Receivables turnover
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,726,100 | 8,178,700 | 8,529,200 | 7,998,900 | 8,002,700 |
| Receivables | US$ in thousands | 619,000 | 736,500 | 597,600 | 524,700 | 533,700 |
| Receivables turnover | 14.10 | 11.10 | 14.27 | 15.24 | 14.99 |
April 30, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $8,726,100K ÷ $619,000K
= 14.10
The receivables turnover ratio of JM Smucker Company over the analyzed period demonstrates some notable trends. For the fiscal year ending April 30, 2021, the ratio was 14.99, indicating that the company collected its average receivables approximately 15 times during the year. This suggests a relatively efficient receivables collection process at that time.
In the subsequent year, ending April 30, 2022, the ratio slightly increased to 15.24, reflecting a marginal improvement in receivables collection efficiency. This indicates that the company was able to convert its receivables into cash slightly more quickly than the previous year.
However, the ratio experienced a decline in the fiscal year ending April 30, 2023, decreasing to 14.27. While still near the previous levels, this reduction signals a slight slowdown in collection efficiency compared to the prior year, possibly due to changes in credit policies, customer payment behavior, or other operational factors.
The most significant change occurred in the fiscal year ending April 30, 2024, when the ratio dropped sharply to 11.10. This decline indicates a notable deterioration in receivables collection efficiency, suggesting that the company took longer to convert receivables into cash, which could impact cash flow and liquidity.
In the latest fiscal year ending April 30, 2025, the receivables turnover ratio increased again to 14.10, nearly returning to the levels seen in 2021 and 2022 but still below the peak observed in 2022. This partial recovery suggests some improvement in collection practices or customer payment terms.
Overall, the trend in JM Smucker's receivables turnover ratios reflects periods of stability interspersed with a significant dip in 2024. The fluctuations may be attributable to changes in credit management strategies, customer base, or macroeconomic factors influencing receivables collection. The ratios indicate that the company generally maintains a reasonable level of receivables management, albeit with some periods of decreased efficiency.