ConAgra Foods Inc (CAG)
Return on total capital
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,175,000 | 1,464,200 | 1,587,600 | 2,141,000 | 1,815,600 |
| Long-term debt | US$ in thousands | 7,492,600 | 7,081,300 | 8,088,200 | 8,275,200 | 8,900,800 |
| Total stockholders’ equity | US$ in thousands | 8,440,400 | 8,736,800 | 8,787,700 | 8,551,800 | 7,876,100 |
| Return on total capital | 7.37% | 9.26% | 9.41% | 12.72% | 10.82% |
May 26, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,175,000K ÷ ($7,492,600K + $8,440,400K)
= 7.37%
ConAgra Foods Inc's return on total capital has shown a declining trend over the past five years. The company's return on total capital was 7.37% in May 2024, down from 9.26% in May 2023 and 9.41% in May 2022. This decrease in return indicates a decrease in the company's profitability relative to the total capital employed in its operations. However, it is worth noting that ConAgra Foods Inc had a higher return on total capital of 12.72% in May 2021 and 10.82% in May 2020.
The declining trend in return on total capital may indicate that the company is facing challenges in generating sufficient profits from the capital invested in its business. It is essential for ConAgra Foods Inc to assess the efficiency of its capital allocation and operational performance to improve its return on total capital and enhance overall profitability in the future.
Peer comparison
May 26, 2024