ConAgra Foods Inc (CAG)

Return on total capital

May 31, 2025 May 31, 2024 May 26, 2024 May 31, 2023 May 28, 2023
Earnings before interest and tax (EBIT) US$ in thousands — 1,046,400 1,175,000 1,315,400 1,464,200
Long-term debt US$ in thousands — — 7,492,600 — 7,081,300
Total stockholders’ equity US$ in thousands 8,932,700 8,440,400 8,440,400 8,736,800 8,736,800
Return on total capital 0.00% 12.40% 7.37% 15.06% 9.26%

May 31, 2025 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $8,932,700K)
= 0.00%

The data provided indicates significant fluctuations in ConAgra Foods Inc.'s return on total capital over the specified periods. As of May 28, 2023, the return on total capital was 9.26%, reflecting a moderate level of profitability relative to the company's total capital employed at that time. By May 31, 2023, this metric increased substantially to 15.06%, suggesting an improvement in operational efficiency or profitability, or perhaps a reduction in capital employed that positively impacted the ratio.

Looking forward, the figure for May 26, 2024, shows a decline to 7.37%, indicating a possible decrease in profitability or increased capital base that dilutes the return percentage. Subsequently, on May 31, 2024, the return on total capital improves to 12.40%, signaling a partial recovery or operational improvement.

However, the most recent data point—May 31, 2025—is recorded as 0.00%, which could imply that the company either experienced a significant impairment, commenced a significant restructuring activity, or there were accounting adjustments affecting the calculation of return on total capital. This zero value indicates a potential concern regarding the company's profitability or its ability to generate returns from its total capital during that period.

Overall, the trend shows considerable volatility, with periods of strong performance followed by declines, culminating in a complete drop to zero in the latest period. Such fluctuations merit further investigation into operational, financial, or structural factors influencing the company's ability to sustain its return on total capital.