JM Smucker Company (SJM)
Operating return on assets (Operating ROA)
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -673,900 | 1,305,800 | 157,500 | 1,023,800 | 1,386,800 |
| Total assets | US$ in thousands | 17,563,300 | 20,273,700 | 14,991,400 | 16,055,000 | 16,284,200 |
| Operating ROA | -3.84% | 6.44% | 1.05% | 6.38% | 8.52% |
April 30, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $-673,900K ÷ $17,563,300K
= -3.84%
The operating return on assets (ROA) for JM Smucker Company has exhibited significant fluctuations over the analyzed period from April 30, 2021, to April 30, 2025. In fiscal 2021, the operating ROA was notably strong at 8.52%, indicating an efficient utilization of assets to generate operating income. This performance declined considerably in the following year, dropping to 6.38% in 2022, which may reflect some operational challenges or increased asset base diluting returns.
The decline continued sharply into 2023, with the operating ROA falling to 1.05%, suggesting a substantial deterioration in operational efficiency or profitability at the asset level. This period warrants further scrutiny to identify potential factors such as increased costs, reduced sales margins, or asset base expansion that might have contributed to the decline.
In the subsequent year, 2024, the operating ROA recovered somewhat to 6.44%, indicating a partial regain in operational efficiency or improved profitability metrics. However, the outlook for 2025 shows a significant reversal, with the operating ROA turning negative at -3.84%. This negative figure indicates a downturn in operational effectiveness, potentially stemming from losses or asset underperformance.
Overall, the trend illustrates a period of relative strength in 2021, a declining trajectory through 2022 and 2023, a partial recovery in 2024, and a notable downturn in 2025. This pattern may reflect underlying operational or strategic issues faced by the company, emphasizing the importance of further analysis into factors affecting asset utilization and operational profitability.