JM Smucker Company (SJM)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 69,900 | 47,200 | 49,200 | 39,500 | 62,000 | 35,900 | 3,623,900 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | 0 | 0 | 432,700 | 459,800 | 487,800 | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 619,000 | 654,300 | 804,600 | 734,900 | 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 |
| 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 |
| Quick ratio | 0.26 | 0.21 | 0.24 | 0.21 | 0.21 | 0.33 | 2.53 | 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 |
April 30, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($69,900K
+ $—K
+ $619,000K)
÷ $2,652,000K
= 0.26
The JM Smucker Company’s quick ratio over the analyzed period demonstrates notable variability, reflecting fluctuations in its liquidity position. Initially, the quick ratio stood at 0.43 as of July 31, 2020, indicating that the company had 43 cents in liquid assets (such as cash, marketable securities, and receivables) for every dollar of current liabilities. This level slightly declined to 0.36 by October 31, 2020, and remained relatively stable around similar levels through the subsequent quarters, with a modest increase to 0.44 in January 2021. The ratio then generally trended downward, reaching a low of 0.27 in July 2021, suggesting a weakening in liquidity.
Throughout 2021, the ratio experienced some recovery, increasing back to 0.43 by October 2021 and reaching 0.51 in January 2022, approaching a more comfortable liquidity cushion. However, this was followed by a decline in the following quarters, with the ratio decreasing to 0.36 in April 2022 and maintaining similar levels into July 2022 and October 2022 at 0.35 and 0.31, respectively. The ratio then showed minor fluctuations, with values of 0.37 in January 2023.
A significant shift is observed in April 2023, when the quick ratio surged to 0.88, indicating a substantial improvement in liquidity and an increased capacity to meet short-term obligations without relying on inventory. Nonetheless, the ratio declined sharply afterward, falling to 0.66 in July 2023 and drastically increasing again to an exceptional 2.53 in October 2023. This unusually high figure suggests a marked strengthening in liquid assets relative to current liabilities at that point, potentially reflecting asset rebalancing, sale of assets, or a change in current liabilities.
Subsequent quarters saw the ratio decline sharply to 0.33 in January 2024 and further to 0.21 by April 2024, where it stabilized at that lower level through July and October 2024, maintaining a relatively narrow margin. The ratio remained steady at approximately 0.21 to 0.26 up to April 2025, indicating a cautious liquidity position that may suggest limited liquidity buffers relative to immediate liabilities.
Overall, the JM Smucker Company’s quick ratio has experienced considerable fluctuations over the period, with some periods of strengthened liquidity, notably in October 2023, contrasted by other periods of tighter liquidity. While the higher ratios in late 2023 indicate periods of favorable liquidity, the sustained lower ratios in the subsequent periods suggest a cautious approach to liquidity management, with potential implications for operational flexibility and short-term financial stability.