JM Smucker Company (SJM)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 38.79% | 39.54% | 38.72% | 38.33% | 38.09% | 36.48% | 35.72% | 34.32% | 32.85% | 32.13% | 31.87% | 32.62% | 33.76% | 35.12% | 36.64% | 38.06% | 39.22% | 39.04% | 38.93% | 38.50% |
| Operating profit margin | -7.72% | 3.77% | 13.84% | 15.91% | 15.97% | 3.24% | 3.50% | 3.32% | 1.85% | 13.12% | 11.33% | 11.78% | 12.80% | 12.18% | 15.38% | 16.29% | 17.33% | 18.29% | 17.07% | 16.60% |
| Pretax margin | -12.00% | -0.42% | 9.30% | 11.81% | 12.18% | 0.06% | 1.03% | 1.04% | -0.11% | 11.16% | 9.35% | 9.73% | 10.55% | 9.85% | 13.01% | 13.48% | 14.64% | 15.62% | 14.35% | 14.18% |
| Net profit margin | -14.10% | -2.92% | 5.96% | 8.77% | 9.10% | -1.24% | -0.17% | -0.21% | -1.07% | 8.54% | 7.01% | 7.33% | 7.90% | 7.31% | 9.72% | 10.05% | 10.95% | 11.69% | 10.92% | 10.78% |
The profitability ratios of JM Smucker Company over the period from July 2020 through October 2024 exhibit notable fluctuations and an overall trend indicative of variability in operational efficiency and profitability.
Gross Profit Margin:
The gross profit margin demonstrates an upward trend following an initial slight increase from 38.50% in July 2020 to a peak of approximately 39.22% in April 2021. Subsequently, the margin experiences a gradual decline, reaching a low of approximately 31.87% in October 2022. From this point, a sustained upward trajectory resumes, culminating at approximately 38.72% as of October 2024. This pattern indicates periods of margin compression potentially reflecting increased cost pressures or pricing challenges, followed by recovery phases suggestive of effective cost management or improved pricing strategies.
Operating Profit Margin:
The operating profit margin shows more pronounced volatility. Starting at 16.60% in July 2020, it generally fluctuates downward through late 2021, reaching a low of approximately 11.33% in October 2022. Post-October 2022, the operating margin recovers significantly, ascending to around 15.97% in April 2024 before declining again towards October 2024. Notably, in April 2023, a drastic reduction to approximately 1.85% marks a period of significant operational challenges, with a partial recovery afterward. The data indicates periods of operational pressure that may be linked to external factors such as supply chain disruptions, promotional activities, or strategic realignments.
Pre-Tax Margin:
The pre-tax margin follows a similar pattern, with initial values around 14%–15%, dipping below 10% in late 2021 and 2022, and experiencing sharp declines in early 2023, even turning negative in certain quarters (notably April 2023 and January 2025). The negative pre-tax margins indicate periods where costs or expenses exceeded revenues before taxes, reflecting challenging profitability conditions during these intervals.
Net Profit Margin:
Net profit margins mirror the trends observed in gross and operating margins, with initial margins around 10%–11% and subsequent declines correlating with operational pressures. Notably, it turns negative in multiple quarters, with values as low as approximately -14.10% in April 2025, signifying periods of unprofitable operations after accounting for all expenses, including taxes and interest. Conversely, recovery episodes are evident, with some quarters exhibiting margins around 8%–9%.
Summary of Trends:
Overall, JM Smucker’s profitability ratios over the examined period reveal a pattern characterized by initial stability with margin compression commencing around late 2021. The significant variability, especially in operating and net profit margins, suggests sensitivity to market conditions, cost structures, and strategic initiatives. The periods of negative margins highlight notable challenges within specific fiscal periods, which may be attributable to external economic factors, input costs, competition, or internal restructuring efforts. The recovery phases indicate strategic adjustments or market conditions that temporarily improved profitability metrics.
In conclusion, JM Smucker Company’s profitability ratios demonstrate resilience in certain periods but also highlight susceptibility to operational and economic fluctuations that materially impact their ability to sustain margins, especially evident in the more volatile operating and net profit margins in recent years.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | -7.01% | -1.39% | 2.63% | 3.66% | 3.67% | -0.50% | -0.08% | -0.12% | -0.61% | 4.44% | 3.53% | 3.61% | 3.93% | 3.61% | 4.73% | 4.89% | 5.38% | 5.82% | 5.21% | 5.10% |
| Return on total capital | -12.79% | 5.14% | 15.95% | 17.20% | 16.39% | 2.74% | 3.17% | 3.33% | 1.96% | 13.01% | 11.20% | 11.50% | 12.34% | 11.40% | 14.46% | 15.15% | 16.60% | 17.75% | 15.74% | 15.81% |
| Return on equity (ROE) | -20.23% | -3.72% | 6.89% | 9.59% | 9.67% | -1.35% | -0.19% | -0.25% | -1.25% | 8.54% | 6.97% | 7.21% | 7.76% | 6.97% | 9.27% | 9.71% | 10.79% | 11.64% | 10.35% | 10.33% |
The profitability ratios of JM Smucker Company reveal notable trends and fluctuations over the period examined, providing insights into the company's operational efficiency, asset management effectiveness, and overall financial performance.
Operating Return on Assets (Operating ROA):
This metric exhibited an initial upward trajectory from 7.85% in July 2020 to a peak of 9.10% in January 2021, signifying improved core operational efficiency during this period. Subsequently, it experienced a gradual decline, falling below 6% by October 2022, indicative of deteriorating operational leverage or margin pressures. A brief recovery emerged with values rising to approximately 6.44% in April 2024 and further to 6.64% in July 2024, but the ratio declined again in October 2024 before falling sharply to 1.80% in January 2025. The last indicated data point shows a negative laser at -3.84%, which suggests significant operational challenges or impairments affecting asset utilization and profitability.
Return on Assets (ROA):
ROA followed a similar initial trend, enhancing from 5.10% in July 2020 to 5.82% in January 2021, before gradually declining to near-breakeven levels around 3.5% during the subsequent year. The ratio turned negative starting around April 2023, reaching as low as -7.01% in April 2025, reflecting substantial declines in net income relative to total assets, possibly owing to operational difficulties, increased costs, or unfavorable market conditions.
Return on Total Capital:
This ratio experienced higher volatility but generally reflected a downward trend over time. It remained relatively strong in the early part of the period, hovering around 15-17%, but saw a decline approaching the end of the period. Notably, the ratio fell significantly in April 2025 to -12.79%, indicating poor returns on invested capital, which may be attributable to diminished profitability and possible financial restructuring or impairments.
Return on Equity (ROE):
ROE demonstrated a pattern of decline from approximately 10.33% in July 2020 to 6.97% in October 2022, suggesting weakening profitability in relation to shareholder equity. The negative trend intensified after April 2023, with the ratio dropping into negative territory, reaching as low as -20.23% in April 2025. These figures imply that the company, during the recent period, has been generating losses attributable to equity holders or experiencing diminished net income, potentially owing to operational setbacks or extraordinary expenses.
Summary:
Overall, JM Smucker Company’s profitability ratios illustrate a period of relative strength early in the analyzed horizon, followed by a significant deterioration starting around 2022. The ratios indicate declining operational efficiency, profitability, and capital returns, culminating in negative profitability metrics toward the end of the period. The sharp downturns signal challenges in sustaining past performance levels, possibly related to market conditions, operational inefficiencies, or strategic issues that have impacted the company's ability to generate positive net income and returns on assets, capital, and equity.