JM Smucker Company (SJM)
Operating return on assets (Operating ROA)
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,305,800 | 157,500 | 1,023,800 | 1,386,800 | 1,223,100 |
| Total assets | US$ in thousands | 20,273,700 | 14,991,400 | 16,055,000 | 16,284,200 | 16,970,400 |
| Operating ROA | 6.44% | 1.05% | 6.38% | 8.52% | 7.21% |
April 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,305,800K ÷ $20,273,700K
= 6.44%
JM Smucker Company's operating return on assets (operating ROA) has shown fluctuations over the past five years. In the most recent fiscal year ending April 30, 2024, the operating ROA improved significantly to 6.44%, compared to 1.05% in the previous year, indicating a substantial enhancement in the company's ability to generate profits from its assets utilized in operations.
The operating ROA in FY 2024 rebounded close to the level seen in FY 2022, where it stood at 6.38%. This suggests that the company has recovered its profitability efficiency to a similar level after a temporary drop in the preceding year.
It is worth noting that JM Smucker Company achieved a relatively high operating ROA of 8.52% in FY 2021, which was the peak performance within the past five years. This implies that the company was exceptionally effective in generating operating income relative to its asset base during that period.
Furthermore, in FY 2020, the operating ROA was at a strong level of 7.21%, indicating good profitability efficiency from its operational assets.
Overall, JM Smucker Company has exhibited varying levels of operating ROA over the five-year period, with fluctuations reflecting changes in operational performance and asset utilization efficiency. The recent improvement in operating ROA in FY 2024 suggests a positive trend in the company's ability to generate profits from its operating assets, although it would be important to monitor future performance to assess the sustainability of this improvement.