ConAgra Foods Inc (CAG)
Profitability ratios
Return on sales
| May 31, 2025 | May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 25.86% | 27.66% | -5.61% | 26.59% | -1.29% |
| Operating profit margin | 11.75% | 7.08% | 10.11% | 8.76% | 12.35% |
| Pretax margin | 9.96% | 5.06% | 5.24% | 7.35% | 7.61% |
| Net profit margin | 9.92% | 2.88% | 2.99% | 5.57% | 5.77% |
The profitability ratios for ConAgra Foods Inc. over the specified periods reflect notable fluctuations and trends across various margins.
The gross profit margin exhibited volatility, with negative values recorded on May 28, 2023 (-1.29%) and May 26, 2024 (-5.61%), indicating periods of gross loss or significant cost pressures relative to revenue. Conversely, positive gross margins appeared on May 31, 2023 (26.59%) and May 31, 2024 (27.66%), suggesting improved gross profitability or cost management during those periods. The gross margin for the most recent date, May 31, 2025, stands at 25.86%, indicating a sustained recovery and stability close to previous high margins.
Operating profit margins also show variability. The margin was 12.35% on May 28, 2023, decreasing to 8.76% by May 31, 2023, and rebounding to 10.11% on May 26, 2024. The figures then declined to 7.08% on May 31, 2024, before increasing significantly to 11.75% on May 31, 2025. This pattern suggests periods of operational challenges followed by improvements, culminating in a strong operating margin in the latest period.
Pre-tax margins followed a similar trend, slightly declining from 7.61% on May 28, 2023, to 7.35% on May 31, 2023, then decreasing further to 5.24% on May 26, 2024, and 5.06% on May 31, 2024. The latest figure exhibits a substantial increase to 9.96%, reflecting improved pre-tax profitability and potentially lower operating costs or favorable non-operating income.
The net profit margin demonstrates the most significant variation. It was 5.77% on May 28, 2023, and slightly decreased to 5.57% on May 31, 2023. During the subsequent year, the net margin declined sharply, reaching approximately 2.99% on May 26, 2024, and 2.88% on May 31, 2024, which indicates periods of reduced bottom-line profitability. Notably, the net profit margin recovered strongly to 9.92% on May 31, 2025, suggesting a significant improvement in net earnings relative to revenue, possibly due to cost reductions, efficiency gains, or favorable external factors.
Overall, the data illustrates a cycle of periods of strain and recovery across all profitability ratios, with the latest period showing a marked improvement in net profit margin and stabilized gross and operating margins, indicating a positive trend in the company's profitability trajectory.
Return on investment
| May 31, 2025 | May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.52% | 4.09% | 5.63% | 4.88% | 6.64% |
| Return on assets (ROA) | 5.51% | 1.66% | 1.66% | 3.10% | 3.10% |
| Return on total capital | 0.00% | 12.40% | 7.37% | 15.06% | 9.26% |
| Return on equity (ROE) | 12.90% | 4.11% | 4.11% | 7.82% | 7.82% |
The provided data reflects ConAgra Foods Inc.'s profitability ratios over several periods, illustrating patterns and variations in the firm’s operational efficiency and financial performance.
Operating Return on Assets (Operating ROA):
The Operating ROA exhibits notable fluctuation across the observed periods. It increased from 6.64% on May 28, 2023, to 4.88% on May 31, 2023, then further declined to 5.63% on May 26, 2024, before decreasing again to 4.09% on May 31, 2024. A subsequent rise is observed in May 31, 2025, reaching 6.52%. This pattern indicates periods of volatility, with the firm experiencing dips and recoveries in its operational efficiency relative to its assets. The overall trend suggests some instability in the firm’s core operations, though an improvement is seen in the most recent period.
Return on Assets (ROA):
The ROA figures follow a similar downward trend initially, starting at 3.10% on both May 28 and 31, 2023, then dropping to 1.66% by May 26 and 31, 2024. An upward movement is evident in the 2025 period, with ROA climbing to 5.51%, which is a significant recovery. This suggests that overall asset productivity in generating net income was subdued in 2024 but rebounded strongly in 2025, pointing to improved efficiency in asset utilization.
Return on Total Capital:
The ratio shows variation with a high of 15.06% on May 31, 2023, followed by a decline to 9.26% on May 28, 2023, and further decreases to 7.37% and 12.40% in subsequent periods. Notably, in the latest period, the ratio drops to zero by May 31, 2025, which indicates a possible data anomaly or a strategic change affecting total capital deployment. Overall, the fluctuations reflect inconsistent performance in generating returns from the total capital invested.
Return on Equity (ROE):
The ROE remains stable at 7.82% during May 2023 but decreases to 4.11% by May 2024, illustrating a decline in shareholders' return during that period. By May 31, 2025, the ROE increases significantly to 12.90%, indicating improved profitability attributable to equity holders. The trend highlights a period of diminished equity profitability followed by substantial recovery, suggesting improved net income relative to shareholders’ equity in recent periods.
In summary, ConAgra Foods Inc.'s profitability ratios depict fluctuations in operational and net income efficiency over time. The company experienced periods of decline across several profitability measures but showed signs of recovery in 2025, particularly in ROA and ROE. The variability underscores the importance of examining underlying operational, strategic, or market factors influencing these ratios during these periods.