ConAgra Foods Inc (CAG)
Return on total capital
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,046,400 | 1,175,000 | 1,315,400 | 1,464,200 | 1,560,700 |
| Long-term debt | US$ in thousands | — | 7,492,600 | — | 7,081,300 | — |
| Total stockholders’ equity | US$ in thousands | 8,440,400 | 8,440,400 | 8,736,800 | 8,736,800 | 8,787,700 |
| Return on total capital | 12.40% | 7.37% | 15.06% | 9.26% | 17.76% |
May 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,046,400K ÷ ($—K + $8,440,400K)
= 12.40%
Based on the provided data on ConAgra Foods Inc's return on total capital, we observe fluctuations in the company's performance over the specified periods.
In May 31, 2022, the return on total capital stood at 17.76%, indicating efficient utilization of capital to generate profits. However, by May 28, 2023, the return decreased to 9.26%, suggesting a decline in capital efficiency.
The subsequent period, May 31, 2023, witnessed an improvement in the return on total capital to 15.06%, signaling a potential recovery in capital productivity. Nevertheless, by May 26, 2024, the return dropped significantly to 7.37%, reflecting potential challenges in capital utilization.
As of the most recent data point in May 31, 2024, the return on total capital rebounded to 12.40%, showing a partial recovery from the previous decline.
Overall, ConAgra Foods Inc's return on total capital demonstrates variability in the company's ability to generate profits relative to the total capital employed. It is essential for stakeholders to monitor these fluctuations closely to assess the company's financial performance and capital efficiency effectively.
Peer comparison
May 31, 2024