JM Smucker Co (JM Smucker Co) Operating Income : $1,393 Mil (TTM As of Jan. 2024)

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What is JM Smucker Co Operating Income?

JM Smucker Co's Operating Income for the three months ended in Jan. 2024 was $396 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was $1,393 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. JM Smucker Co's Operating Income for the three months ended in Jan. 2024 was $396 Mil. JM Smucker Co's Revenue for the three months ended in Jan. 2024 was $2,229 Mil. Therefore, JM Smucker Co's Operating Margin % for the quarter that ended in Jan. 2024 was 17.78%.

Warning Sign:

JM Smucker Co operating margin has been in a 5-year decline. The average rate of decline per year is -3.3%.

JM Smucker Co's 5-Year average Growth Rate for Operating Margin % was -3.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. JM Smucker Co's annualized ROC % for the quarter that ended in Jan. 2024 was 6.11%. JM Smucker Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was 41.15%.

JM Smucker Co Operating Income Historical Data

The historical data trend for JM Smucker Co's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

JM Smucker Co Operating Income Chart

JM Smucker Co Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Operating Income

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1,197.80

1,292.00

1,386.00

1,172.60

1,180.70

JM Smucker Co Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Operating Income	Get a 7-Day Free Trial															318.50	387.00	303.50	305.70	396.30

JM Smucker Co Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,393 Mil.

JM Smucker Co (NYSE:SJM) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

JM Smucker Co's annualized ROC % for the quarter that ended in Jan. 2024 is calculated as:

	ROC % (Q: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2023 )	+	Invested Capital (Q: Jan. 2024 ))	/ count )
=	1585.2 * ( 1 - 38.41% )	/	( (12658.2	+	19298)	/ 2 )
=	976.32468	/	15978.1
=	6.11 %

where

	Invested Capital		(Q: Oct. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	18123.7	-	1435.8	-	( 4056.6	-	max(0, 1834.4	-	5864.1	+	4056.6	))
=	12658.2

	Invested Capital		(Q: Jan. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	20247.2	-	1492.6	-	( 35.9	-	max(0, 2467.4	-	1924	+	35.9	))
=	19298

Note: The Operating Income data used here is four times the quarterly (Jan. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

JM Smucker Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jan. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Oct. 2023		Q: Jan. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	1181.2	/	( ( (2547.7 + max(6.3000000000009, 0))	+	(3187.2 + max(-120.7, 0)) )	/	2 )
=	1181.2	/	( ( 2554	+	3187.2 )	/	2 )
=	1181.2	/	2870.6
=	41.15 %

where Working Capital is:

	Working Capital		(Q: Oct. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(587.9	+	1084.9	+	134.7)	-	(1435.8	+	0	+	365.4)
=	6.3000000000009

	Working Capital		(Q: Jan. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(789.6	+	987.6	+	110.9)	-	(1492.6	+	0	+	516.2)
=	-120.7

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

JM Smucker Co's Operating Margin % for the quarter that ended in Jan. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	396.3	/	2229.2
	=	17.78 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

JM Smucker Co Operating Income Related Terms

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JM Smucker Co (JM Smucker Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » JM Smucker Co (NYSE:SJM) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

JM2:Germany S1JM34:Brazil

Address

One Strawberry Lane, Orrville, OH, USA, 44667-0280

Website

https://www.jmsmucker.com

J.M. Smucker is a packaged food company that primarily sells through the U.S. retail channel (77% of forecast fiscal 2024 revenue), with the remaining share consisting of Hostess, foodservice, and international (primarily Canada). Following the divestiture of several pet foods brands and private-label products that constituted about $1.5 billion of sales, retail coffee is now its largest category (33% of sales) with brands Folgers and Dunkin'. Pet foods (22% of sales) holds leading brands like Milk-Bone and Meow Mix. Of its remaining, approximately 22% comes from consumer foods, primarily peanut butter and jelly, through brands Jif and Smucker's. The company acquired Hostess Brands in fiscal 2024 to boost its snack and convenience store presence.

Executives

Tucker H Marshall	officer: Chief Financial Officer	ONE STRAWBERRY LANE, ORRVILLE OH 44667
Tarang Amin	director	C/O SCHIFF NUTRITION INTERNATIONAL, INC., 2002 SOUTH 5070 WEST, SALT LAKE CITY UT 84104
Amy C Held	officer: Chief Strategy & Int'l Officer	ONE STRAWBERRY LANE, ORRVILLE OH 44667
Mercedes Abramo	director	ONE STRAWBERRY LANE, ORRVILLE OH 44667
Richard K Smucker	director, officer: President	C/ WM WRIGLEY JR CO, 410 N MICHIGAN AVE, CHICAGO IL 60611
Mark T Smucker	officer: Vice President
Jill R Penrose	officer: Chief People & Admin Officer	ONE STRAWBERRY LANE, ORRVILLE OH 44667
John P Brase	officer: Chief Operating Officer	ONE STRAWBERRY LANE, ORRVILLE OH 44667
Jeannette L Knudsen	officer: Chief Legal & Compliance Offic	ONE STRAWBERRY LANE, ORRVILLE OH 44667
Geoff E Tanner	officer: Chief Marketing & Commercial	ONE STRAWBERRY LANE, ORRVILLE OH 44667
Johnson Jonathan E Iii	director	6322 S 300 S, STE 100, SALT LAKE CITY UT 84121
Nancy Lopez Knight	director	2308 TARA DRIVE, ALBANY GA 31721
Jay L Henderson	director	50 SOUTH LASALLE ST, CHICAGO IL 60603
Dawn C Willoughby	director	1221 BROADWAY, OAKLAND CA 94612
Sandra Pianalto	director	1000 EATON BOULEVARD, CLEVELAND OH 44122