JM Smucker Company (SJM)
Profitability ratios
Return on sales
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.10% | 32.88% | 33.48% | 38.79% | 38.67% |
| Operating profit margin | 15.97% | 1.85% | 12.69% | 17.14% | 15.76% |
| Pretax margin | 12.19% | -0.11% | 10.46% | 14.48% | 13.23% |
| Net profit margin | 9.10% | -1.07% | 7.83% | 10.83% | 10.04% |
JM Smucker Company's profitability ratios have fluctuated over the past five years.
1. Gross Profit Margin: The company's gross profit margin has varied, ranging from 32.88% in 2023 to 38.79% in 2021. In 2024, the gross profit margin improved to 38.10%. This indicates the company's ability to generate profit from its core operations after deducting the cost of goods sold.
2. Operating Profit Margin: The operating profit margin has shown significant fluctuations, with a low of 1.85% in 2023 and a high of 17.14% in 2021. In 2024, the operating profit margin improved to 15.97%. This ratio reflects the company's efficiency in managing its operating expenses relative to its revenue.
3. Pretax Margin: The pretax margin also fluctuated over the years, with a negative figure of -0.11% in 2023 to a high of 14.48% in 2021. In 2024, the pretax margin improved to 12.19%. This ratio signifies the company's ability to generate profits before accounting for taxes.
4. Net Profit Margin: The net profit margin, which indicates the company's bottom-line profitability, has ranged from -1.07% in 2023 to 10.83% in 2021. In 2024, the net profit margin improved to 9.10%. This reflects the company's ability to generate profit after accounting for all expenses, including taxes.
Overall, JM Smucker Company has shown mixed performance in terms of profitability ratios, with improvements in some areas in 2024 compared to the previous year. It is important for the company to monitor and manage these ratios effectively to ensure sustained profitability and financial health.
Return on investment
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.44% | 1.05% | 6.38% | 8.52% | 7.21% |
| Return on assets (ROA) | 3.67% | -0.61% | 3.93% | 5.38% | 4.59% |
| Return on total capital | 9.03% | 1.36% | 8.22% | 11.91% | 9.02% |
| Return on equity (ROE) | 9.67% | -1.25% | 7.76% | 10.79% | 9.52% |
JM Smucker Company's profitability ratios have shown varying trends over the past five years.
1. Operating return on assets (Operating ROA) has fluctuated, with a significant increase in 2024 compared to 2023. This ratio indicates that management is generating more operating income per dollar of assets in 2024 compared to previous years.
2. Return on assets (ROA) has also experienced fluctuations, with a negative figure in 2023 but has improved in 2024. ROA measures the overall profitability of the company's assets, and the positive trend in recent years indicates an improvement in asset utilization efficiency.
3. Return on total capital has shown an increasing trend over the period, indicating that the company is generating higher returns on the total capital employed in the business. The highest return was observed in 2021, showing efficient capital allocation.
4. Return on equity (ROE) has been positive and generally improving, with a notable increase in 2024. This metric reflects the return generated for the shareholders' equity investment, and the upward trend indicates improved profitability for shareholders over the years.
Overall, JM Smucker Company has shown positive performance in terms of profitability ratios, with a focus on improving operating efficiency and generating higher returns for both assets and capital employed.