JM Smucker Company (SJM)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 0.81 | 0.60 | 0.58 | 0.55 | 0.52 | 0.78 | 3.20 | 1.28 | 1.44 | 1.16 | 1.09 | 1.05 | 1.03 | 1.19 | 1.06 | 0.71 | 0.68 | 0.82 | 0.77 | 0.96 |
April 30, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,146,600K ÷ $2,652,000K
= 0.81
The analysis of JM Smucker Company's current ratio over the specified period reveals notable fluctuations that reflect variations in the company's liquidity position. The current ratio commenced at 0.96 as of July 31, 2020, indicating that current assets slightly fell short of current liabilities during that period. It experienced a decline to 0.77 by October 31, 2020, and fluctuated modestly during the subsequent quarters, reaching lows around 0.68 in April 2021, which suggests periods of weaker short-term liquidity.
A gradual improvement was observed starting in late 2021, with the current ratio increasing to above 1.0 by October 31, 2021, and further rising to 1.19 as of January 31, 2022, indicating a more comfortable liquidity position. This upward trend continued through 2022, reaching a peak of 1.44 on April 30, 2023, signifying healthy short-term asset coverage. The ratio maintained control within the range of approximately 1.03 to 1.28 during this period, consistent with a stable liquidity stance.
A significant anomaly is evident at October 31, 2023, when the current ratio surges to an exceptionally high value of 3.20. Such an elevated ratio could suggest an accumulation of current assets relative to current liabilities, potentially implying excess liquidity or conservative asset management during that quarter.
Subsequently, the ratio declines sharply to 0.78 on January 31, 2024, and remains below 1.0 through the following quarters, registering ratios of 0.52, 0.55, 0.58, 0.60, and 0.81 through April 2024 to April 2025. These figures indicate a period where current assets were insufficient to fully cover current liabilities, reflecting a reduced liquidity buffer.
Overall, the company's current ratio exhibits significant variability, with periods of both relative liquidity sufficiency (above 1.0) and potential liquidity risk (below 1.0). The spike in late 2023 followed by subsequent declines may be associated with strategic shifts in asset management, operational cycles, or external financial conditions impacting liquidity. The data underscores the importance of further analyzing underlying asset and liability structures to better understand the causes of these fluctuations and assess the company's short-term financial health comprehensively.