ConAgra Foods Inc (CAG)
Return on equity (ROE)
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 347,200 | 347,200 | 683,600 | 683,600 | 888,200 |
| Total stockholders’ equity | US$ in thousands | 8,440,400 | 8,440,400 | 8,736,800 | 8,736,800 | 8,787,700 |
| ROE | 4.11% | 4.11% | 7.82% | 7.82% | 10.11% |
May 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $347,200K ÷ $8,440,400K
= 4.11%
ConAgra Foods Inc's return on equity (ROE) has exhibited a declining trend over the years. In May 2022, the ROE stood at 10.11%, indicating that for every dollar of shareholders' equity, the company generated a 10.11% return. However, by May 2024, the ROE had decreased to 4.11%, reflecting a significant drop in the profitability and efficiency of utilizing shareholders' equity.
A declining ROE can be a cause for concern as it suggests that the company is becoming less effective in generating profits from the equity provided by its shareholders. It is important for ConAgra Foods Inc to investigate and address the factors contributing to this downward trend in ROE to improve its overall financial performance and value creation for its shareholders.
Peer comparison
May 31, 2024