ConAgra Foods Inc (CAG)

Return on total capital

		May 26, 2024	Feb 25, 2024	Nov 26, 2023	Aug 27, 2023	May 28, 2023	Feb 26, 2023	Nov 27, 2022	Aug 28, 2022	May 29, 2022	Feb 27, 2022	Nov 28, 2021	Aug 29, 2021	May 30, 2021	Feb 28, 2021	Nov 29, 2020	Aug 30, 2020	May 31, 2020	Feb 23, 2020	Nov 24, 2019	Aug 25, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,175,000	1,812,400	1,814,900	1,927,700	1,464,200	1,566,400	1,409,600	1,221,900	1,587,600	1,686,400	1,807,700	1,981,800	2,141,000	2,272,000	2,166,200	2,039,500	1,815,600	1,707,300	1,748,500	1,666,000
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	8,088,200	9,540,000	10,190,000	10,320,000	8,275,200	9,990,000	10,850,000	11,380,000	8,900,800	11,390,000	11,610,000	11,660,000
Total stockholders’ equity	US$ in thousands	8,440,400	9,154,900	9,004,000	8,884,500	8,736,800	8,866,400	8,666,300	8,504,300	8,787,700	8,774,600	8,679,000	8,557,000	8,551,800	8,251,800	8,392,000	8,121,400	7,876,100	7,785,000	7,612,100	7,440,100
Return on total capital		7.37%	10.39%	10.60%	11.17%	9.26%	9.15%	8.08%	7.10%	9.41%	9.21%	9.58%	10.50%	12.72%	12.45%	11.26%	10.46%	10.82%	8.90%	9.10%	8.72%

May 26, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,175,000K ÷ ($7,492,600K + $8,440,400K)
= 7.37%

The return on total capital for ConAgra Foods Inc has shown some variability over the past years. The ratio was highest at 12.72% in May 2021 and lowest at 7.10% in August 2022. Overall, the return on total capital has ranged between 7.10% and 12.72%, with an average of about 9.88% based on the provided data.

This indicates that the company has been generating a return on its total capital of approximately 9.88% on average over the given time period. It is important to note that a higher return on total capital generally suggests that the company is efficiently utilizing its capital to generate profits for its shareholders.

Further analysis of the company's financial performance and the factors influencing the return on total capital over time would be necessary to make informed decisions about the company's financial health and operational efficiency.