JM Smucker Company (SJM)
Total asset 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 |
| Total assets | US$ in thousands | 17,563,300 | 20,273,700 | 14,991,400 | 16,055,000 | 16,284,200 |
| Total asset turnover | 0.50 | 0.40 | 0.57 | 0.50 | 0.49 |
April 30, 2025 calculation
Total asset turnover = Revenue ÷ Total assets
= $8,726,100K ÷ $17,563,300K
= 0.50
The total asset turnover ratio of JM Smucker Company has exhibited variability over the period from April 2021 to April 2025. Specifically, as of April 30, 2021, the ratio stood at 0.49, indicating that the company generated approximately $0.49 in sales for each dollar of total assets. This ratio experienced a marginal increase in the subsequent year, rising to 0.50 as of April 30, 2022, suggesting a slight improvement in the efficiency of asset utilization in generating sales. The ratio further increased to 0.57 by April 30, 2023, reflecting a more notable enhancement in asset efficiency or sales performance relative to its asset base during that period.
However, this positive trend did not persist into the following year, as the ratio declined sharply to 0.40 as of April 30, 2024. This decline indicates a reduction in asset utilization efficiency, which could be attributed to several factors, such as increased asset base without a commensurate increase in sales, operational challenges, or strategic shifts impacting sales performance. Into April 2025, the ratio rebounded back to 0.50, matching the level observed in 2022, suggesting a possible recovery or improvement in asset utilization effectiveness.
Overall, the trend in JM Smucker Company’s total asset turnover ratio over this five-year period reflects periods of both enhancement and decline in asset efficiency. The fluctuation suggests that while the company experienced periods of increased sales relative to assets, recent performance in April 2024 points to a temporary setback, followed by a subsequent improvement by April 2025.