JM Smucker Company (SJM)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 6,082,600 | 7,693,900 | 7,290,800 | 8,140,100 | 8,124,800 |
| ROE | -20.23% | 9.67% | -1.25% | 7.76% | 10.79% |
April 30, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-1,230,800K ÷ $6,082,600K
= -20.23%
The analysis of JM Smucker Company's Return on Equity (ROE) over the specified period reveals significant fluctuations, highlighting changes in the company's profitability and efficiency in utilizing shareholders' equity. As of April 30, 2021, the ROE was 10.79%, indicating a modest level of profitability from shareholders' investments. This figure declined markedly to 7.76% by April 30, 2022, reflecting a decrease in net income relative to equity or possibly an increase in shareholders' equity without a proportional increase in net income.
In the subsequent year, April 30, 2023, the ROE turned negative at -1.25%, signaling that the company experienced a net loss or diminished net income significant enough to outweigh shareholders’ equity. This negative ROE suggests operational or market challenges faced during that period, substantially impairing return generation on equity.
By April 30, 2024, the ROE improved to 9.67%, indicating a recovery in profitability and improved efficiency in generating returns from equity capital. However, the outlook drastically changed by April 30, 2025, with the ROE plunging to -20.23%. This sharp decline signals a severe deterioration in net income, possibly due to extraordinary losses, write-downs, or significant operational setbacks, resulting in a substantial loss relative to shareholders’ equity.
Overall, the trend of JM Smucker's ROE over these years illustrates periods of moderate profitability interspersed with phases of considerable financial decline. The data suggests that while the company experienced a recovery after the low point in 2023, the subsequent sharp negative turn in 2025 indicates underlying financial or operational difficulties that adversely impacted the company's ability to generate positive returns for shareholders.