JM Smucker Company (SJM)
Quick ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 62,000 | 35,900 | 3,624 | 241,100 | 655,800 | 104,200 | 27,100 | 151,600 | 169,900 | 284,300 | 155,300 | 168,800 | 334,300 | 501,500 | 405,600 | 396,600 | 391,100 | 74,400 | 48,800 | 48,800 |
| Short-term investments | US$ in thousands | — | — | 432,700 | 459,800 | 487,800 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 736,500 | 789,600 | 587,900 | 592,400 | 597,600 | 533,900 | 609,500 | 605,000 | 524,700 | 563,200 | 659,100 | 566,000 | 533,700 | 604,900 | 577,000 | 497,600 | 551,400 | 477,300 | 522,400 | 473,700 |
| 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 |
| Quick ratio | 0.21 | 0.33 | 0.56 | 0.66 | 0.88 | 0.37 | 0.31 | 0.35 | 0.36 | 0.51 | 0.43 | 0.27 | 0.30 | 0.44 | 0.36 | 0.43 | 0.59 | 0.27 | 0.25 | 0.23 |
April 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($62,000K
+ $—K
+ $736,500K)
÷ $3,761,100K
= 0.21
The quick ratio of JM Smucker Company has fluctuated over the past several periods. Generally, the quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets.
In analyzing JM Smucker Company's quick ratio data, we can observe a downward trend from the high of 0.88 in April 2023 to the low of 0.21 in April 2024. The quick ratio indicates that the company may have struggled at times to cover its short-term liabilities with its quick assets.
The quick ratio was below 1 in the most recent periods, suggesting that JM Smucker may have had difficulty meeting its short-term obligations without relying on inventory or other less liquid assets. Investors and creditors may view lower quick ratios with caution, as it may indicate potential liquidity issues.
Overall, JM Smucker Company's quick ratio trend indicates fluctuations in liquidity levels, underscoring the importance of closely monitoring the company's ability to manage its short-term financial obligations effectively.