JM Smucker Company (SJM)
Return on assets (ROA)
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -1,230,800 | 744,000 | -91,300 | 631,700 | 876,300 |
| Total assets | US$ in thousands | 17,563,300 | 20,273,700 | 14,991,400 | 16,055,000 | 16,284,200 |
| ROA | -7.01% | 3.67% | -0.61% | 3.93% | 5.38% |
April 30, 2025 calculation
ROA = Net income ÷ Total assets
= $-1,230,800K ÷ $17,563,300K
= -7.01%
The return on assets (ROA) for JM Smucker Company has exhibited significant variability over the analyzed period from April 30, 2021, to April 30, 2025. At the end of fiscal year 2021, the ROA stood at 5.38%, indicating a moderately effective utilization of the company’s assets to generate net income. In the subsequent year, fiscal 2022, the ROA declined to 3.93%, reflecting a reduction in asset efficiency and profitability.
By fiscal 2023, the ROA transitioned into negative territory at -0.61%, marking a period where the company likely experienced losses or diminished net income relative to its asset base. This negative ROA signals reduced profitability and potential challenges in asset utilization during that period. The improvement observed in fiscal 2024, with an ROA rising to 3.67%, suggests a recovery in profitability, possibly driven by operational or strategic enhancements.
However, the trend reverts to a negative and more severe level in fiscal 2025, with the ROA dropping to -7.01%. This indicates a substantial decline in asset efficiency and profitability, potentially attributable to adverse market conditions, increased costs, restructuring efforts, or other financial pressures impacting the company’s net income relative to its asset base.
Overall, the ROA trend for JM Smucker Company demonstrates a period of decline culminating in negative profitability, followed by partial recovery, and then a significant deterioration in recent years. This pattern warrants further analysis into underlying operational, strategic, or external factors influencing the company’s profitability and asset utilization over the specified period.