JM Smucker Company (SJM)
Working capital turnover
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,726,100 | 8,788,000 | 8,831,200 | 8,498,600 | 8,178,700 | 8,207,800 | 8,194,900 | 8,461,400 | 8,529,200 | 8,328,200 | 8,169,000 | 8,013,900 | 7,998,900 | 7,885,300 | 7,904,900 | 7,888,900 | 8,002,700 | 8,174,500 | 8,070,100 | 7,993,900 |
| Total current assets | US$ in thousands | 2,146,600 | 1,975,300 | 2,055,500 | 2,081,100 | 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 |
| Total current liabilities | US$ in thousands | 2,652,000 | 3,289,400 | 3,563,200 | 3,764,000 | 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 |
| Working capital turnover | — | — | — | — | — | — | 2.03 | 15.40 | 9.78 | 29.01 | 42.72 | 72.52 | 139.60 | 24.37 | 66.82 | — | — | — | — | — |
April 30, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,726,100K ÷ ($2,146,600K – $2,652,000K)
= —
The analysis of JM Smucker Company's working capital turnover over the period presented reveals significant fluctuations indicative of changes in operational efficiency and liquidity management.
Initially, data prior to October 2021 shows the working capital turnover as undefined or unavailable ("—"), which suggests that either the company’s working capital figures were insufficient or not calculated for this period. Starting from October 31, 2021, the ratio appears at a notably high level of 66.82, implying that the company was generating substantial sales relative to its working capital during this time.
Subsequently, the ratio drops markedly to 24.37 on January 31, 2022, reflecting a reduction in the efficiency with which working capital is utilized to generate sales. This downward trend continues with a significant peak at 139.60 on April 30, 2022, suggesting a period of very efficient working capital management or possibly a reduced level of working capital relative to sales.
Following this peak, the ratio declines again to 72.52 on July 31, 2022, and further decreases to 42.72 on October 31, 2022. These reductions suggest a gradual normalization or dilution of ratio levels, potentially due to an increase in working capital or a decrease in sales relative to working capital.
From the start of 2023, the ratio continues its downward trend, reaching 29.01 by January 31, 2023, and then dropping further to 9.78 on April 30, 2023. The ratio further diminishes to 15.40 and 2.03 on July 31, 2023, and October 31, 2023, respectively. The pronounced decline in 2023 indicates a significant decline in the efficiency of working capital utilization, which could reflect changes such as increased working capital, decreased sales, or both.
Overall, the working capital turnover trend demonstrates a pattern of initial high efficiency followed by a steady decline through 2022 and into 2023. The near-zero value as of October 31, 2023, suggests very low sales relative to working capital, potentially signifying operational adjustments, liquidity concerns, or strategic shifts in working capital management. The absence of data beyond October 2023 limits further analysis but indicates that the ratio has decreased markedly over the analyzed period, emphasizing a trend toward reduced working capital efficiency.