Cal-Maine Foods Inc (CALM)
Return on total capital
| May 31, 2025 | Jun 1, 2024 | May 31, 2024 | Jun 3, 2023 | May 31, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,603,750 | 362,126 | 360,520 | 1,000,420 | 999,133 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,560,620 | 1,800,150 | 1,800,150 | 1,611,080 | 1,611,080 |
| Return on total capital | 62.63% | 20.12% | 20.03% | 62.10% | 62.02% |
May 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,603,750K ÷ ($—K + $2,560,620K)
= 62.63%
The data indicates that Cal-Maine Foods Inc.'s return on total capital has experienced significant fluctuations over the observed period. As of May 31, 2023, the return on total capital was approximately 62.02%, with a slight increase to 62.10% by June 3, 2023. This high level of return suggests that the company was effectively utilizing its total capital to generate earnings at that time.
However, by the end of the subsequent fiscal year on May 31, 2024, the return dropped substantially to 20.03%, further rising marginally to 20.12% by June 1, 2024. This sharp decline indicates a considerable decrease in the company's efficiency in generating profits from its total capital base during that period, potentially reflecting changes in operational performance, capital structure, or external market conditions.
Interestingly, the return on total capital rebounded sharply to approximately 62.63% by May 31, 2025. This resurgence suggests an improvement in the company's ability to generate profit from its invested capital, possibly due to operational improvements, strategic initiatives, or favorable market conditions.
Overall, the pattern reveals high volatility in Cal-Maine Foods Inc.'s return on total capital across the analyzed periods. The fluctuations highlight periods of significant operational or strategic shifts, reflecting the company's dynamic performance over time.