JM Smucker Company (SJM)
Total asset 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 |
| Total assets | US$ in thousands | 20,273,700 | 14,991,400 | 16,055,000 | 16,284,200 | 16,970,400 |
| Total asset turnover | 0.40 | 0.57 | 0.50 | 0.50 | 0.46 |
April 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $8,176,400K ÷ $20,273,700K
= 0.40
The total asset turnover ratio measures how efficiently a company is generating revenue from its assets. A higher total asset turnover ratio indicates that the company is effectively utilizing its assets to generate sales.
Looking at JM Smucker Company's total asset turnover ratio over the past five years, we can see some fluctuations. In April 2024, the total asset turnover ratio decreased to 0.40 from 0.57 in the previous year. This drop could indicate that the company's assets were not as effectively utilized to generate sales during the period.
Comparing this to the ratios in the prior years, we can see that there has been some inconsistency in the company's ability to generate revenue from its assets. While the ratio was relatively consistent around 0.50 in April 2022 and 2021, it increased to 0.57 in April 2023 before declining in the most recent period.
Overall, JM Smucker Company's total asset turnover ratio has shown some variability over the years, suggesting fluctuations in the company's efficiency in utilizing its assets to generate sales. Further analysis of the company's operations and financial performance would be required to determine the reasons behind these fluctuations and to assess the company's overall asset utilization efficiency.