JM Smucker Co (STU:JM2) ROCE % : 6.83% (As of Jan. 2024)

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What is JM Smucker Co ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. JM Smucker Co's annualized ROCE % for the quarter that ended in Jan. 2024 was 6.83%.

JM Smucker Co ROCE % Historical Data

The historical data trend for JM Smucker Co's ROCE % 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.

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JM Smucker Co ROCE % Chart

JM Smucker Co Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

ROCE %

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6.63

8.30

8.89

7.67

1.05

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
ROCE %	Get a 7-Day Free Trial															8.42	-18.69	8.36	7.99	6.83

JM Smucker Co ROCE % Calculation

JM Smucker Co's annualized ROCE % for the fiscal year that ended in Apr. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Apr. 2023 )		(A: Apr. 2022 )		(A: Apr. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Apr. 2023 )		(A: Apr. 2022 )		(A: Apr. 2023 )
	=	130.234	/	( ( (14866.93 - 1808.293)	+	(13672.157 - 1811.87) )	/ 2 )
	=	130.234	/	( (13058.637	+	11860.287)	/ 2 )
	=	130.234	/	12459.462
	=	1.05 %

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

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	1084.34	/	( ( (17163.144 - 1737.177)	+	(18586.93 - 2265.073) )	/ 2 )
	=	1084.34	/	( ( 15425.967	+	16321.857 )	/ 2 )
	=	1084.34	/	15873.912
	=	6.83 %

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

JM Smucker Co (STU:JM2) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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JM Smucker Co (STU:JM2) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » JM Smucker Co (STU:JM2) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

SJM:USA 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.

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