ConAgra Foods Inc (CAG)
Profitability ratios
Return on sales
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | -5.61% | -1.29% | 6.51% | 8.74% | 29.09% |
| Operating profit margin | 10.11% | 12.35% | 14.18% | 19.86% | 17.21% |
| Pretax margin | 5.24% | 7.61% | 10.53% | 13.85% | 9.87% |
| Net profit margin | 2.99% | 5.77% | 7.93% | 12.05% | 7.96% |
It is evident from the profitability ratios of ConAgra Foods Inc over the past five years that there has been a declining trend in the gross profit margin. The company's gross profit margin decreased from 29.09% in 2020 to -5.61% in 2024, indicating a significant decrease in the profitability of the company's core operations.
Similarly, the operating profit margin also witnessed a downward trend, declining from 17.21% in 2020 to 10.11% in 2024. This indicates that the company's ability to generate profits from its operating activities has weakened over the years.
The pretax margin and net profit margin followed a similar pattern, showing a consistent decline over the five-year period. The pretax margin decreased from 9.87% in 2020 to 5.24% in 2024, while the net profit margin dropped from 7.96% in 2020 to 2.99% in 2024.
Overall, the declining trend in ConAgra Foods Inc's profitability ratios highlights the challenges the company may be facing in maintaining and improving its profitability levels. It is important for the company to closely monitor and address the factors contributing to this trend to enhance its overall financial performance.
Return on investment
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.63% | 6.64% | 7.08% | 9.65% | 8.14% |
| Return on assets (ROA) | 1.66% | 3.10% | 3.96% | 5.85% | 3.77% |
| Return on total capital | 7.37% | 9.26% | 9.41% | 12.72% | 10.82% |
| Return on equity (ROE) | 4.11% | 7.82% | 10.11% | 15.19% | 10.67% |
ConAgra Foods Inc's profitability ratios have shown varying trends over the past five years. The Operating Return on Assets (Operating ROA) has experienced a slight decline from 9.65% in 2021 to 5.63% in 2024. This ratio measures the company's ability to generate operating income from its assets.
The Return on Assets (ROA) has also fluctuated, with a significant drop from 5.85% in 2021 to 1.66% in 2024. ROA indicates the company's overall efficiency in generating profits from its total assets.
The Return on Total Capital has followed a similar pattern, decreasing from 12.72% in 2021 to 7.37% in 2024. This ratio reflects how effectively the company is utilizing its total capital to generate profits.
On the other hand, the Return on Equity (ROE) has shown more volatility, with fluctuations between 4.11% in 2024 and 15.19% in 2021. ROE measures the return generated for shareholders' equity investment in the company.
Overall, ConAgra Foods Inc's profitability ratios have displayed mixed performance over the five-year period, indicating the company's varying ability to generate profits relative to its assets, capital, and equity. Further analysis of the company's financial statements and business operations may be required to understand the factors influencing these trends.