JM Smucker Company (SJM)
Solvency ratios
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.33 | 0.29 | 0.27 | 0.22 | 0.32 |
| Debt-to-capital ratio | 0.47 | 0.37 | 0.35 | 0.30 | 0.40 |
| Debt-to-equity ratio | 0.88 | 0.59 | 0.53 | 0.43 | 0.66 |
| Financial leverage ratio | 2.64 | 2.06 | 1.97 | 2.00 | 2.07 |
JM Smucker Company's solvency ratios indicate the company's ability to meet its long-term obligations and manage its debt levels effectively.
1. Debt-to-assets ratio: This ratio has been relatively stable over the past five years, showing a slight increase from 0.22 in 2021 to 0.33 in 2024. This suggests that JM Smucker Company has been increasing its reliance on debt to finance its assets.
2. Debt-to-capital ratio: The trend for this ratio has also been increasing over the years, indicating a higher proportion of debt in the company's capital structure. From 0.30 in 2021, the ratio has climbed to 0.47 in 2024, reflecting an increasing level of leverage.
3. Debt-to-equity ratio: This ratio has shown fluctuations but has generally been on an upward trend, reaching 0.88 in 2024 from 0.43 in 2021. This indicates that JM Smucker Company has been using more debt relative to equity in its financing.
4. Financial leverage ratio: The financial leverage ratio has also been fluctuating, but overall, it has increased from 2.00 in 2021 to 2.64 in 2024. This indicates that the company's reliance on debt to fund its operations and growth has been increasing.
Overall, the solvency ratios of JM Smucker Company show a trend of increasing leverage and reliance on debt for financing its operations and investments. It is important for the company to carefully manage its debt levels to ensure long-term financial stability and sustainability.
Coverage ratios
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2,176.33 | 1,575.00 | 10,238.00 | 13,868.00 | 6,115.50 |
The interest coverage ratio of JM Smucker Company has exhibited fluctuations over the past five years. The ratio in April 2020 was 6,115.50, indicating the company's ability to cover its interest expenses by 6,115.50 times. This exceptionally high ratio dropped significantly in the following year to 13,868.00, showing a substantial increase in interest expenses relative to earnings.
In April 2022, the interest coverage ratio fell sharply to 10,238.00, suggesting a potential strain on the company's ability to cover interest payments comfortably. However, in the subsequent years, the ratio showed an improvement. By April 2023, the interest coverage ratio stood at 1,575.00, indicating a concerning decrease and a potential sign of financial stress.
Most recently, in April 2024, the interest coverage ratio surged to 2,176.33, showing a positive increase in the company's ability to cover interest expenses compared to the previous year. Overall, JM Smucker Company's interest coverage has exhibited variability, with periods of strong coverage followed by potential challenges in meeting interest obligations. It is essential for investors and analysts to monitor these fluctuations closely to assess the company's financial health and sustainability.