JM Smucker Company (SJM)

Solvency ratios

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 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019
Debt-to-assets ratio 0.33 0.40 0.43 0.29 0.29 0.27 0.27 0.26 0.27 0.27 0.27 0.22 0.22 0.24 0.23 0.28 0.32 0.28 0.27 0.28
Debt-to-capital ratio 0.47 0.52 0.52 0.38 0.37 0.34 0.34 0.35 0.35 0.34 0.34 0.30 0.30 0.32 0.31 0.36 0.40 0.36 0.36 0.37
Debt-to-equity ratio 0.88 1.07 1.10 0.62 0.59 0.52 0.52 0.53 0.53 0.52 0.52 0.43 0.43 0.48 0.46 0.56 0.66 0.56 0.57 0.59
Financial leverage ratio 2.64 2.68 2.56 2.10 2.06 1.92 1.97 2.00 1.97 1.93 1.96 1.98 2.00 2.00 1.99 2.03 2.07 2.04 2.07 2.10

The solvency ratios of JM Smucker Company provide insights into the company's ability to meet its long-term financial obligations. Over the past few periods, the debt-to-assets ratio has ranged from 0.22 to 0.43, with a decreasing trend from 0.43 to 0.29, indicating that the company has effectively managed its debt levels in relation to its total assets.

Similarly, the debt-to-capital ratio has varied from 0.30 to 0.52, with a downward trend towards the end of the period. This ratio shows the proportion of the company's capital structure that is funded by debt, and the decreasing trend suggests a more balanced mix of debt and equity financing.

The debt-to-equity ratio has ranged from 0.43 to 1.10, with fluctuations over time. A higher ratio indicates higher financial risk, and JM Smucker Company has shown some variability in its reliance on debt to finance its operations.

The financial leverage ratio, which measures the extent to which a company uses debt to finance its operations, has ranged from 1.92 to 2.68. The decrease in this ratio towards the end of the period suggests a more conservative approach to debt utilization by the company.

Overall, the solvency ratios of JM Smucker Company reflect a relatively stable financial position with a decreasing trend in debt ratios towards the end of the period, indicating improved solvency and potentially a stronger financial position for the company.

Coverage ratios

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 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019
Interest coverage 2,176.33 665.75 717.00 1,406.50 1,575.00 10,930.00 — 9,441.00 10,238.00 9,605.00 12,161.00 — 13,868.00 14,948.00 6,888.00 6,633.00 6,115.50 20.89 9.51 6.21

The interest coverage ratio measures a company's ability to meet its interest obligations on its debt using its operating income. A higher interest coverage ratio indicates a greater ability to cover interest expenses.

In the case of JM Smucker Company, there has been considerable variability in the interest coverage ratio over the past few periods. The trend shows some fluctuations, with significant changes observed in the ratio from one period to another.

For instance, the interest coverage ratio ranged from as low as 6.21 to as high as 14,948.00 over the analyzed periods. This significant variability may indicate fluctuations in operating income relative to interest expenses, potentially influenced by factors such as changes in revenue, expenses, or debt levels.

The most recent interest coverage ratio of 2,176.33 for Apr 30, 2024, reflects a strong ability to cover interest expenses. However, it is essential to note that this ratio seems unusually high compared to previous periods, which might require further investigation to understand any underlying causes.

In summary, JM Smucker Company has experienced fluctuations in its interest coverage ratio over the analyzed periods, indicating varying levels of ability to meet interest obligations. Further analysis of the company's financial performance and debt management practices may provide additional insights into the factors driving these fluctuations.