ConAgra Foods Inc (CAG)
Return on total capital
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | May 26, 2024 | Feb 29, 2024 | Feb 25, 2024 | Nov 30, 2023 | Nov 26, 2023 | Aug 31, 2023 | Aug 27, 2023 | May 31, 2023 | May 28, 2023 | Feb 28, 2023 | Feb 26, 2023 | Nov 30, 2022 | Nov 27, 2022 | Aug 31, 2022 | Aug 28, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,179,100 | 815,400 | 53,400 | 70,000 | 213,700 | 1,080,600 | 2,096,300 | 2,150,200 | 2,097,500 | 1,658,600 | 1,280,300 | 1,252,100 | 1,307,300 | 1,799,300 | 2,290,400 | 1,779,000 | 1,260,300 | 938,100 | 549,200 | 939,300 |
| Long-term debt | US$ in thousands | — | — | — | — | — | 7,492,600 | — | 8,290,000 | — | 8,110,000 | — | 8,370,000 | — | 7,081,300 | — | 8,250,000 | — | 8,790,000 | — | 8,710,000 |
| Total stockholders’ equity | US$ in thousands | 8,932,700 | 8,779,100 | 8,800,700 | 8,695,600 | 8,440,400 | 8,440,400 | 9,154,900 | 9,154,900 | 9,004,000 | 9,004,000 | 8,884,500 | 8,884,500 | 8,736,800 | 8,736,800 | 8,866,400 | 8,866,400 | 8,666,300 | 8,666,300 | 8,504,300 | 8,504,300 |
| Return on total capital | 13.20% | 9.29% | 0.61% | 0.81% | 2.53% | 6.78% | 22.90% | 12.33% | 23.30% | 9.69% | 14.41% | 7.26% | 14.96% | 11.37% | 25.83% | 10.39% | 14.54% | 5.37% | 6.46% | 5.46% |
May 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,179,100K ÷ ($—K + $8,932,700K)
= 13.20%
The analysis of ConAgra Foods Inc.'s return on total capital (ROTC) over the provided period reveals significant fluctuations, indicating variability in the company's efficiency in utilizing its total capital to generate earnings.
At the beginning of the period, as of August 28, 2022, the ROTC stood at approximately 5.46%, which declined slightly by August 31, 2022, to 6.46%. By November 27, 2022, the metric further decreased to around 5.37%, but then experienced a sharp increase by November 30, 2022, reaching approximately 14.54%. This notable rise suggests a substantial improvement in capital efficiency during this interval.
Moving into early 2023, the ROTC reached a peak of about 25.83% on February 28, 2023, representing a significant enhancement in the company's ability to generate returns on its capital. However, following this peak, the ratio declined again, falling to around 11.37% by May 28, 2023, and then rising once more to approximately 14.96% by May 31, 2023.
The trend displays volatility with cyclical peaks and troughs throughout 2023. Notably, the ratio reached about 23.30% on November 30, 2023, highlighting a period of strong capital efficiency. However, this was followed by a steep decline in early 2024, with ROTC dropping to approximately 6.78% on May 26, 2024, and further sharply decreasing to around 0.81% on August 31, 2024. The downward trend continued into late 2024, with values near 0.61% on November 30, 2024.
In the most recent observations, the ROTC shows some recovery, rising to approximately 9.29% as of February 28, 2025, and further to about 13.20% by May 31, 2025.
Overall, the data illustrates periods of strong performance interspersed with significant declines, suggesting that ConAgra Foods Inc. experienced episodes of both efficient and inefficient capital utilization. The considerable fluctuations imply possible underlying changes in operational performance, strategic adjustments, or external factors impacting profitability and capital management during this timeframe.
Peer comparison
May 31, 2025