JM Smucker Company (SJM)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,305,800 | 266,300 | 286,800 | 281,300 | 157,500 | 1,093,000 | 925,700 | 944,100 | 1,023,800 | 960,500 | 1,216,100 | 1,285,100 | 1,386,800 | 1,494,800 | 1,377,600 | 1,326,600 | 1,223,100 | 1,030,000 | 958,600 | 959,300 |
| Total assets | US$ in thousands | 20,273,700 | 20,247,200 | 18,123,700 | 14,711,800 | 14,991,400 | 16,017,500 | 16,219,300 | 16,276,700 | 16,055,000 | 15,966,400 | 16,240,800 | 16,211,700 | 16,284,200 | 16,429,400 | 16,929,700 | 16,902,300 | 16,970,400 | 16,636,200 | 16,791,000 | 16,791,600 |
| Operating ROA | 6.44% | 1.32% | 1.58% | 1.91% | 1.05% | 6.82% | 5.71% | 5.80% | 6.38% | 6.02% | 7.49% | 7.93% | 8.52% | 9.10% | 8.14% | 7.85% | 7.21% | 6.19% | 5.71% | 5.71% |
April 30, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,305,800K ÷ $20,273,700K
= 6.44%
The operating Return on Assets (ROA) of JM Smucker Company has shown fluctuations over the past several quarters. The operating ROA measures how efficiently the company generates profits from its assets used in its core operations.
From April 2020 to April 2024, the operating ROA ranged from 1.05% to 9.10%. There is variability in performance, with higher peaks in ROA observed in the earlier quarters compared to the most recent quarters.
The downward trend in the operating ROA from the peak of 9.10% in January 2021 to 6.44% in April 2024 suggests potential challenges in generating operating income relative to the total assets employed in the business.
It is essential for JM Smucker Company to analyze the underlying factors contributing to these fluctuations in operating ROA and implement strategies to improve efficiency in asset utilization to enhance profitability in the future.