Cal-Maine Foods Inc (CALM)
Return on total capital
| Jun 1, 2024 | Jun 3, 2023 | May 28, 2022 | May 29, 2021 | May 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 362,126 | 1,000,420 | 166,627 | -9,736 | 20,620 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,800,150 | 1,611,080 | 1,104,550 | 1,012,780 | 1,009,680 |
| Return on total capital | 20.12% | 62.10% | 15.09% | -0.96% | 2.04% |
June 1, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $362,126K ÷ ($—K + $1,800,150K)
= 20.12%
Cal-Maine Foods Inc's return on total capital has shown fluctuations over the past five years. In June 2023, the return on total capital was notably high at 62.10%, indicating strong profitability relative to the capital invested. However, this figure dropped significantly to 15.09% in May 2022, before turning negative in May 2021 at -0.96%, which suggests that the company experienced challenges in generating returns on its total capital during that period.
The return on total capital rebounded in June 2024 to 20.12%, indicating an improvement in profitability and the company's ability to efficiently utilize its total capital to drive returns. It is important for investors and stakeholders to monitor this ratio over time to assess Cal-Maine Foods Inc's performance in generating profits relative to the total capital employed in its operations.