ConAgra Foods Inc (CAG)
Profitability ratios
Return on sales
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | |
|---|---|---|---|---|---|
| Gross profit margin | 27.66% | -5.61% | 26.59% | -1.29% | 24.61% |
| Operating profit margin | 7.08% | 10.11% | 8.76% | 12.35% | 11.67% |
| Pretax margin | 5.06% | 5.24% | 7.35% | 7.61% | 10.22% |
| Net profit margin | 2.88% | 2.99% | 5.57% | 5.77% | 7.70% |
ConAgra Foods Inc's profitability ratios show a fluctuating trend over the past few years. The gross profit margin, which reflects the percentage of revenue retained as gross profit after accounting for the cost of goods sold, has seen a decline from 24.61% on May 31, 2022, to -1.29% on May 28, 2023, before recovering to 27.66% on May 31, 2024.
The operating profit margin, indicating the percentage of sales that translates into operating income, has shown some volatility as well, ranging from 7.08% on May 31, 2024, to a high of 12.35% on May 28, 2023.
The pretax margin, which measures the proportion of sales that result in pre-tax profit, has experienced a downward trend, declining from 10.22% on May 31, 2022, to 5.06% on May 31, 2024.
The net profit margin, representing the percentage of sales that remains as net income after all expenses are deducted, has also exhibited a decreasing pattern, dropping from 7.70% on May 31, 2022, to 2.88% on May 31, 2024.
Overall, ConAgra Foods Inc's profitability ratios indicate some inconsistency in maintaining profitability levels, with varying margins across different periods. The company may need to focus on cost management, pricing strategies, and operational efficiency to improve its overall profitability.
Return on investment
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.09% | 5.63% | 4.88% | 6.64% | 6.00% |
| Return on assets (ROA) | 1.66% | 1.66% | 3.10% | 3.10% | 3.96% |
| Return on total capital | 12.40% | 7.37% | 15.06% | 9.26% | 17.76% |
| Return on equity (ROE) | 4.11% | 4.11% | 7.82% | 7.82% | 10.11% |
ConAgra Foods Inc's profitability ratios show fluctuating performance over the years.
- Operating return on assets (Operating ROA): The company's operating ROA improved from 6.00% in May 2022 to 6.64% in May 2023 before declining to 4.88% in May 2023. Subsequently, it increased to 5.63% in May 2024 but dropped to 4.09% by May 31, 2024.
- Return on assets (ROA): The ROA decreased from 3.96% in May 2022 to 1.66% in May 26, 2024. This indicates a decline in the company's ability to generate profits relative to its assets.
- Return on total capital: Return on total capital fluctuated, with a high of 17.76% in May 2022, dropping to 7.37% by May 26, 2024. This ratio reflects the company's efficiency in generating profits from both equity and debt capital.
- Return on equity (ROE): The ROE also showed a downward trend, from 10.11% in May 2022 to 4.11% by May 31, 2024. This indicates a decreasing profitability for the company's shareholders.
Overall, ConAgra Foods Inc's profitability ratios demonstrate varied performance over the years, with some ratios showing improvement while others displaying a decline. This signals potential challenges in generating profits efficiently and effectively managing the company's assets and capital.