JM Smucker Company (SJM)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -777,700 | 355,200 | 1,217,600 | 1,336,600 | 1,260,700 | 207,000 | 225,000 | 233,100 | 142,800 | 1,084,300 | 920,100 | 936,600 | 1,004,700 | 942,200 | 1,198,100 | 1,237,600 | 1,349,000 | 1,457,300 | 1,339,900 | 1,319,500 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,082,600 | 6,907,300 | 7,633,100 | 7,769,500 | 7,693,900 | 7,560,100 | 7,088,900 | 7,003,400 | 7,290,800 | 8,335,000 | 8,217,300 | 8,144,300 | 8,140,100 | 8,266,900 | 8,286,400 | 8,170,300 | 8,124,800 | 8,211,600 | 8,515,000 | 8,345,200 |
| 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% |
April 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-777,700K ÷ ($—K + $6,082,600K)
= -12.79%
The analysis of JM Smucker Company's return on total capital over the period from July 2020 through April 2025 reveals notable fluctuations and trends. Initially, the company's return on total capital demonstrated relative stability, with figures ranging from approximately 14.46% to 17.75%. Specifically, the period from July 2020 to January 2021 experienced high and consistent returns, with the peak at 17.75% in January 2021, indicating robust performance relative to the capital employed during this timeframe.
Subsequently, from April 2021 through October 2022, the return experienced a general downward trajectory, decreasing from about 16.60% to approximately 11.20%. This decline could suggest increased capital costs, declining profitability, or shifts in operational efficiency. The lowest point within this declining trend was recorded in October 2022 at 11.20%, representing a significant reduction from earlier peaks.
Beginning in early 2023, a notable turnaround is observed. The return increased steadily from 13.01% in January 2023 to a peak of 17.20% in July 2024. This sharp recovery suggests a period of improved operational performance or favorable market conditions. However, the subsequent decline, reaching 5.14% in January 2025, indicates renewed challenges or increased capital costs. The data also shows a remarkable negative return of -12.79% in April 2025, marking a significant deterioration and possibly reflecting extraordinary losses, restructuring costs, or other adverse factors affecting the company's profitability relative to its total capital.
Throughout this period, the overall trend demonstrates considerable volatility, with periods of recovery punctuated by sharp declines. The fluctuation suggests that JM Smucker Company's efficiency in generating returns on total capital has been influenced by varying operational, market, or strategic factors over the observed timeframe. The recent negative figures imply that recent performance has been notably challenged, potentially impacting the company's long-term capital effectiveness.