J M SMUCKER Co 10-K form for the fiscal year ended 2022-04-30, page 28: 
Results of Operations


This discussion and analysis deals with comparisons of material changes in the consolidated financial statements for the years ended April 30, 2022 and 2021. For the comparisons of the years ended April 30, 2021 and 2020, see the Management's Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 of our 2021 Annual Report on Form 10-K.
|    |                                                 |                      |         |      |      |                      |         |      |    |
|---:|:------------------------------------------------|:---------------------|:--------|:-----|:-----|:---------------------|:--------|:-----|:---|
|  1 |                                                 | Year Ended April 30, |         |      |      |                      |         |      |    |
|  2 |                                                 | 2022                 |         | 2021 |      | % Increase(Decrease) |         |      |    |
|  3 | Net sales                                       | $                    | 7,998.9 |      |      | $                    | 8,002.7 | -    | %  |
|  4 | Gross profit                                    | $                    | 2,700.7 |      |      | $                    | 3,138.7 | (14) |    |
|  5 | % of net sales                                  | 33.8                 | %       |      | 39.2 | %                    |         |      |    |
|  6 | Operating income                                | $                    | 1,023.8 |      |      | $                    | 1,386.8 | (26) |    |
|  7 | % of net sales                                  | 12.8                 | %       |      | 17.3 | %                    |         |      |    |
|  8 | Net income:                                     |                      |         |      |      |                      |         |      |    |
|  9 | Net income                                      | $                    | 631.7   |      |      | $                    | 876.3   | (28) |    |
| 10 | Net income per common share – assuming dilution | $                    | 5.83    |      |      | $                    | 7.79    | (25) |    |
| 11 | Adjusted gross profit (A)                       | $                    | 2,744.6 |      |      | $                    | 3,048.5 | (10) |    |
| 12 | % of net sales                                  | 34.3                 | %       |      | 38.1 | %                    |         |      |    |
| 13 | Adjusted operating income (A)                   | $                    | 1,440.1 |      |      | $                    | 1,528.8 | (6)  |    |
| 14 | % of net sales                                  | 18.0                 | %       |      | 19.1 | %                    |         |      |    |
| 15 | Adjusted income: (A)                            |                      |         |      |      |                      |         |      |    |
| 16 | Income                                          | $                    | 962.2   |      |      | $                    | 1,025.0 | (6)  |    |
| 17 | Earnings per share – assuming dilution          | $                    | 8.88    |      |      | $                    | 9.12    | (3)  |    |
(A)We use non-GAAP financial measures to evaluate our performance. Refer to "Non-GAAP Financial Measures" in this discussion and analysis for a reconciliation to the comparable generally accepted accounting principles ("GAAP") financial measure.

Net Sales
|    |                                                                    |                      |         |      |         |                     |         |        |    |       |    |    |
|---:|:-------------------------------------------------------------------|:---------------------|:--------|:-----|:--------|:--------------------|:--------|:-------|:---|:------|:---|:---|
|  1 |                                                                    | Year Ended April 30, |         |      |         |                     |         |        |    |       |    |    |
|  2 |                                                                    | 2022                 |         | 2021 |         | Increase (Decrease) |         | %      |    |       |    |    |
|  3 | Net sales                                                          | $                    | 7,998.9 |      |         | $                   | 8,002.7 |        | $  | (3.8) | -  | %  |
|  4 | Crisco divestiture                                                 | -                    |         |      | (198.9) |                     |         | 198.9  |    | 2     |    |    |
|  5 | Natural Balance divestiture                                        | -                    |         |      | (156.7) |                     |         | 156.7  |    | 2     |    |    |
|  6 | Private label dry pet food divestiture                             | -                    |         |      | (40.7)  |                     |         | 40.7   |    | 1     |    |    |
|  7 | Natural beverage and grains divestiture                            | -                    |         |      | (35.5)  |                     |         | 35.5   |    | -     |    |    |
|  8 | Foreign currency exchange                                          | (17.1)               |         |      | -       |                     |         | (17.1) |    | -     |    |    |
|  9 | Net sales excluding divestitures and foreign currency exchange (A) | $                    | 7,981.8 |      |         | $                   | 7,570.9 |        | $  | 410.9 | 5  | %  |
Amounts may not add due to rounding.
(A)Net sales excluding divestitures and foreign currency exchange is a non-GAAP financial measure used to evaluate performance internally. This measure provides useful information to investors because it enables comparison of results on a year-over-year basis. 
Net sales in 2022 was comparable to the prior year, which includes $431.8 of noncomparable net sales in the prior year related to divestitures. Net sales excluding divestitures and foreign currency exchange increased $410.9, or 5 percent, which was primarily due to higher net price realization across each of our U.S. Retail segments and for International and Away From Home, reflecting list price increases during 2022.
28






Question: What does the variation in Return on Assets (ROA) from 2021 to 2022 reveal about JM Smucker's effectiveness in utilizing its asset base to generate income?
Answer: The ROA for JM Smucker showed a decline in 2022, driven by a sharp reduction in net income while asset levels remained relatively constant. This decline reflects the company’s reduced efficiency in leveraging its assets to generate returns. The strain caused by higher costs, operational inefficiencies, and the financial implications of the Jif recall significantly impacted the company's ability to optimize its asset utilization.