Suckers 2018 Annual Report
http://www.jmsmucker.com/investor-relations/smuckers-annual-report
J.M. Smucker (JMS) is a well-respected American company founded in 1897. The iconic
Smucker and Smucker-owned brand names have reached far beyond consumer foods; most
notably jellies, jams, and preserves. The Company now offers a wide variety of quality products
to include natural beverages, coffee, pet food and pet snacks.
Forbes (2018) ranked J.M. Smucker # 266 for America’s largest Public Companies and is
recognized as a Fortune 500 Company. In 2017 Smucker sales reached $7.4 billion with a $1.3
billion in profits and $15.3 billion. Their current Market value is $13.7 billion. This brand has
been led by five generations of the founding family – the Smucker’s - since it was founded 120
years ago.
Deep in history, Jerome Monroe Smucker founded a cider mill in Orville, Ohio crafting apple
cider and apple butter for the locals. From his early door to door delivery of stone crocks to the
Smucker’s fruit spreads brought in stores today, his commitment to continued quality assurance
is evident by the JM Smucker signature on each jar. “With a name like Smucker’s, it has to be
good slogan” is recognized across North America. Their marketing, promotions, and
advertisements clearly communicate to the consumer the Company’s commitment to remain
rooted in their fundamental principles and beliefs of quality, people, ethics, growth, and
independence.
A financial analyst will find J.M. Smucker has a balanced portfolio posting some increases and
decreases in their diversified product sales. Their brand holds a leading position in several
categories: fruit spreads, JIF Peanut butter, organic peanut butter. Although the analyst may give
JMS a passing grade on P/E (Price Earning) ratio, revenue growth vs. EPS (earnings per share)
growth, sales growth rate and positive current quarter earnings, JMS received a failing grade on
the earnings growth rate for the past several quarters, earnings persistence, and long-term EPS
growth. SJM had two-quarters of skimpy growth last year, however, sales are predicted to top
$8 billion this year (Zweig, 2018).
J.M. Smucker’s annual report is visually appealing and presents the reader with recognizable
images of brand name labels and happy people using a combination of beautiful photography and
data visualization. Impactful bullets highlighting milestone and celebrating successes keeps the
reader interested and engaged. According to Crooks (2014), the annual report should talk about
the people because the audience wants to know about the humans behind the brands. JMS’s
report presentation is very personal from a customer perspective. However, the people behind the
products are not adequately mentioned nor pictured. Overall the Annual report is quite “busy”
and shares a lot of information regarding both big and small achievements, perhaps too
much. Smucker’s has successfully used their annual report to connect with their audience
through quality product labels, photos depicting their family-oriented culture, and their
commitment to maintaining a positive community footprint. They have achieved global
branding through customer loyalty, and their annual report reflects a commitment to quality,
excellence and robust execution of their business strategy resulting in optimal financial
performance.
My notes about info that stands out on the balance sheet:
•
It appears they are moving in the right direction.
•
Cash and position is improving as their inventory levels continue to move in the right direction.
•
Fixed assets would lead you to believe they are investing for growth.
•
Current liabilities are decreasing at a faster pace than their Total Asset position.
•
All of this leads to a better Stock holder equity position.
References:
America's largest private companies (2018) In Forbes.com. Retrieved August 2, 2018,
from https://www.forbes.com/largest-private-companies/list/
Crooks, R. (2014, January). 12 lessons from Warby Parker's annual report. Forbes. Retrieved
from http://www.forbes.com/sites/rosscrooks/2014/01/30/12-lessons-from-warby-parkersannual-report/ (Links to an external site.)Links to an external site.
(2018, June 18). In The J.M. Smucker Company. Retrieved August 2, 2018,
from http://www.jmsmucker.com/investor-relations/smuckers-annual-report (Links to an
external site.)Links to an external site.
Zweig, M. (2018, August 2). J.M. Smucker Company (The) (SJM). In Nasdaq.com. Retrieved
August 2, 2018, from https://www.nasdaq.com/symbol/sjm/guru-analysis/zweig
Total Possible Score: 25.00
Provides a Background of the Firm, the Industry, the Economy, and the Outlook for the Future
Total: 7.00
Distinguished - Provides an accurate and thorough background of the firm, the industry, the economy, and the outlook for the future.
Proficient - Provides a background of the firm, the industry, the economy, and the outlook for the future. The background has a few inaccuracies or
minor details are missing.
Basic - Provides a limited background of the firm, the industry, economy, and the outlook for the future. The background has several inaccuracies
and/or relevant details are missing.
Below Expectations - Attempts to provide a background of the firm, the industry, economy, and future outlook; however, the background has many
inaccuracies and/or significant details are missing.
Non-Performance - The background of the firm, the industry, the economy, and the outlook for the future are either nonexistent or lack the components
described in the assignment instructions.
Analyzes the Short Term Liquidity, Operating Efficiency, Capital Structure and Profitability of the Firm Using
the Financial Statements
Total: 9.00
Distinguished - Accurately and thoroughly analyzes the firm's financial statements, including short term liquidity, operating efficiency, capital structure,
and profitability.
Proficient - Analyzes the firm's financial statements, including short term liquidity, operating efficiency, capital structure, and profitability. The analysis
has a few inaccuracies or minor details are missing.
Basic - Partially analyzes the firm's financial statements, including short term liquidity, operating efficiency, capital structure, and profitability. The
analysis has several inaccuracies and/or relevant details are missing.
Below Expectations - Attempts to analyze the firm's financial statements, including short term liquidity, operating efficiency, capital structure, and
profitability; however, the analysis has many few inaccuracies and/or significant details are missing.
Non-Performance - The analysis of the firm's financial statements is either nonexistent or lacks the components described in the assignment
instructions.
Concludes With Recommendations for Future Analysis of the Firm(Trend Analysis)
Total: 7.00
Distinguished - Concludes with accurate and thorough recommendations for future analysis of the firm’s financial status, including trend analysis.
Proficient - Concludes with recommendations for future analysis of the firm's financial status, including trend analysis. The recommendations have a
few inaccuracies or minor details are missing.
Basic - Concludes with limited recommendations for future analysis of the firm's financial status, including trend analysis. The recommendations have
several inaccuracies and/or relevant details are missing.
Below Expectations - Attempts to conclude with recommendations for future analysis of the firm’s financial status, including trend analysis; however,
the recommendation have many inaccuracies and/or significant details are missing.
Non-Performance - The recommendations for future analysis are either nonexistent or lacks the components described in the assignment instructions.
Critical Thinking: Explanation of Issues
Total: 0.50
Distinguished - Clearly and comprehensively explains the issue to be considered, delivering all relevant information necessary for a full understanding.
Proficient - Clearly explains the issue to be considered, delivering enough relevant information for an adequate understanding.
Basic - Briefly explains the issue to be considered, delivering minimal information for a basic understanding.
Below Expectations - Briefly explains the issue to be considered, but may not deliver additional information necessary for a basic understanding.
Non-Performance - The assignment is either nonexistent or lacks the components described in the instructions.
Written Communication: Content Development
Total: 0.50
Distinguished - Uses appropriate, pertinent, and persuasive content to discover and develop sophisticated ideas within the context of the discipline,
shaping the work as a whole.
Proficient - Uses appropriate and pertinent content to discover ideas within the context of the discipline, shaping the work as a whole.
Basic - Uses appropriate and pertinent content but does not apply it toward discovering or developing ideas. Overall, content assists in shaping the
written work.
Below Expectations - Uses content, though it may be unrelated or inappropriate to the topic. Content does not contribute toward the development of
the written work and may distract the reader from its purpose.
Non-Performance - The assignment is either nonexistent or lacks the components described in the instructions.
Written Communication: Control of Syntax and Mechanics
Total: 0.25
Distinguished - Displays meticulous comprehension and organization of syntax and mechanics, such as spelling and grammar. Written work contains
no errors and is very easy to understand.
Proficient - Displays comprehension and organization of syntax and mechanics, such as spelling and grammar. Written work contains only a few minor
errors and is mostly easy to understand.
Basic - Displays basic comprehension of syntax and mechanics, such as spelling and grammar. Written work contains a few errors which may slightly
distract the reader.
Below Expectations - Fails to display basic comprehension of syntax or mechanics, such as spelling and grammar. Written work contains major errors
which distract the reader.
Non-Performance - The assignment is either nonexistent or lacks the components described in the instructions.
Written Communication: APA Formatting
Total: 0.25
Distinguished - Accurately uses APA formatting consistently throughout the paper, title page, and reference page.
Proficient - Exhibits APA formatting throughout the paper. However, layout contains a few minor errors.
Basic - Exhibits limited knowledge of APA formatting throughout the paper. However, layout does not meet all APA requirements.
Below Expectations - Fails to exhibit basic knowledge of APA formatting. There are frequent errors, making the layout difficult to distinguish as APA.
Non-Performance - The assignment is either nonexistent or lacks the components described in the instructions.
Written Communication: Page Requirement
Total: 0.25
Distinguished - The length of the paper is equivalent to the required number of correctly formatted pages.
Proficient - The length of the paper is nearly equivalent to the required number of correctly formatted pages.
Basic - The length of the paper is equivalent to at least three quarters of the required number of correctly formatted pages.
Below Expectations - The length of the paper is equivalent to at least one half of the required number of correctly formatted pages.
Non-Performance - The assignment is either nonexistent or lacks the components described in the instructions.
Written Communication: Resource Requirement
Total: 0.25
Distinguished - Uses more than the required number of scholarly sources, providing compelling evidence to support ideas. All sources on the reference
page are used and cited correctly within the body of the assignment.
Proficient - Uses the required number of scholarly sources to support ideas. All sources on the reference page are used and cited correctly within the
body of the assignment.
Basic - Uses less than the required number of sources to support ideas. Some sources may not be scholarly. Most sources on the reference page are
used within the body of the assignment. Citations may not be formatted correctly.
Below Expectations - Uses an inadequate number of sources that provide little or no support for ideas. Sources used may not be scholarly. Most
sources on the reference page are not used within the body of the assignment. Citations are not formatted correctly.
Non-Performance - The assignment is either nonexistent or lacks the components described in the instructions.
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