JM Smucker Company (SJM)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -673,900 | 331,200 | 1,222,600 | 1,351,800 | 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 |
| Total assets | US$ in thousands | 17,563,300 | 18,425,600 | 20,020,100 | 20,348,200 | 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 |
| Operating ROA | -3.84% | 1.80% | 6.11% | 6.64% | 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% |
April 30, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-673,900K ÷ $17,563,300K
= -3.84%
The operating return on assets (ROA) for JM Smucker Company demonstrates notable fluctuations over the analyzed periods. During the fiscal year ending July 31, 2020, the operating ROA stood at 7.85%, which increased to 8.14% by October 2020, indicating initial improvement in operational efficiency. The upward trend continued into January 2021, reaching 9.10%, the highest point within this period, before receding slightly to 8.52% by April 2021. Subsequently, the ROA declined modestly to 7.93% in July 2021 and further to 7.49% in October 2021.
A more pronounced decline commenced thereafter, with the figure dropping to 6.02% by January 2022 and marginally increasing to 6.38% in April 2022. For the following quarters, the operating ROA continued a downward trajectory, reaching 5.80% in July 2022 and 5.71% in October 2022. This ongoing decline stabilized somewhat in early 2023, with the figure rising to 6.82% in January 2023 but then experiencing a sharp decline to 1.05% in April 2023. The subsequent quarters showed slight recoveries and fluctuations, with values at 1.91% in July 2023 and 1.58% in October 2023.
The trend reversed notably in early 2024, with the operating ROA increasing to 1.32% in January, then significantly rising to 6.44% in April, and further to 6.64% in July 2024. A marginal decrease was observed in the October 2024 reading at 6.11%. However, a sharp decline reappeared in early 2025, with the ROA dropping to 1.80% in January and turning negative at -3.84% in April 2025.
Overall, the company's operating ROA exhibits considerable volatility, with periods of relative strength punctuated by sharp declines, especially noticeable from early 2023 onward. The recent negative and near-zero values suggest periods of operational challenges impacting the company's efficiency in generating profit relative to its assets.