JM Smucker Company (SJM)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,176,400 | 8,203,900 | 8,216,100 | 8,468,800 | 8,522,300 | 8,352,500 | 8,192,500 | 8,062,500 | 8,066,900 | 7,949,900 | 7,991,000 | 7,978,100 | 8,091,800 | 8,235,300 | 8,087,600 | 7,987,200 | 7,746,000 | 7,556,100 | 7,525,500 | 7,543,400 |
| Total current assets | US$ in thousands | 1,966,900 | 1,924,000 | 5,864,100 | 2,496,800 | 2,858,700 | 2,027,800 | 2,250,900 | 2,287,700 | 2,010,100 | 1,988,200 | 2,008,800 | 1,952,900 | 1,941,700 | 2,078,700 | 2,067,100 | 1,984,800 | 1,972,700 | 1,602,700 | 1,659,200 | 1,613,500 |
| Total current liabilities | US$ in thousands | 3,761,100 | 2,467,400 | 1,834,400 | 1,947,200 | 1,986,700 | 1,740,700 | 2,059,700 | 2,177,200 | 1,952,800 | 1,664,600 | 1,890,500 | 2,763,200 | 2,867,500 | 2,532,400 | 2,692,800 | 2,073,100 | 1,587,100 | 2,077,400 | 2,310,100 | 2,290,800 |
| Working capital turnover | — | — | 2.04 | 15.41 | 9.77 | 29.09 | 42.85 | 72.96 | 140.78 | 24.57 | 67.55 | — | — | — | — | — | 20.09 | — | — | — |
April 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,176,400K ÷ ($1,966,900K – $3,761,100K)
= —
The working capital turnover ratio for JM Smucker Company has exhibited fluctuations over the past few quarters. The ratio indicates the efficiency with which the company is utilizing its working capital to generate sales revenue. A higher turnover ratio is generally considered favorable as it suggests the company is efficiently utilizing its working capital.
In the most recent data available, as of October 31, 2023, the working capital turnover stood at 2.04. This ratio suggests that for every dollar of working capital invested, the company generated $2.04 of sales revenue during that period.
The ratio saw a significant increase in efficiency in subsequent quarters, reaching 29.09 as of January 31, 2023, and further improving to 42.85 by April 30, 2023. This indicates that the company improved its utilization of working capital to generate higher sales during those periods.
However, the ratio spiked to 140.78 as of July 31, 2022, suggesting a substantial increase in the efficiency of working capital utilization. This spike could indicate a particularly strong period of sales generation relative to the amount of working capital deployed.
Overall, the trend of the working capital turnover ratio for JM Smucker Company shows fluctuations, with periods of significant efficiency gains and fluctuations in performance. It is important for investors and analysts to track this ratio over time to assess the company's effectiveness in managing its working capital resources.