Campbell Soup Company Common Stock (CPB)
Profitability ratios
Return on sales
| Jul 28, 2024 | Jul 30, 2023 | Jul 31, 2022 | Aug 1, 2021 | Aug 2, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 11.19% | 15.03% | 14.44% | 19.02% | 34.51% |
| Operating profit margin | 10.38% | 14.02% | 13.58% | 18.23% | 12.74% |
| Pretax margin | 7.86% | 12.06% | 11.39% | 15.69% | 20.73% |
| Net profit margin | 5.88% | 9.17% | 8.84% | 11.82% | 18.73% |
The profitability ratios of Campbell Soup Company Common Stock have shown a declining trend over the past five years. The gross profit margin has decreased from 34.51% in 2020 to 11.19% in 2024, indicating a decrease in efficiency in generating profits from sales. The operating profit margin has also followed a similar trend, declining from 12.74% in 2020 to 10.38% in 2024, suggesting decreasing efficiency in managing operating expenses.
The pretax margin has shown a consistent decline from 20.73% in 2020 to 7.86% in 2024, reflecting a decrease in the company's ability to generate profits before taxes relative to its total revenue. Similarly, the net profit margin has decreased from 18.73% in 2020 to 5.88% in 2024, indicating a declining ability to generate profits after accounting for all expenses and taxes.
Overall, the decreasing profitability margins of Campbell Soup Company Common Stock over the past five years raise concerns about the company's efficiency in generating profits from its operations. Investors and analysts may need to further investigate the reasons behind this downward trend and assess the company's strategies for improving profitability in the future.
Return on investment
| Jul 28, 2024 | Jul 30, 2023 | Jul 31, 2022 | Aug 1, 2021 | Aug 2, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.56% | 10.88% | 9.78% | 13.17% | 8.95% |
| Return on assets (ROA) | 3.72% | 7.12% | 6.37% | 8.54% | 13.16% |
| Return on total capital | 26.52% | 35.95% | 34.94% | 48.86% | 83.77% |
| Return on equity (ROE) | 14.94% | 23.44% | 22.73% | 31.79% | 63.52% |
Campbell Soup Company's profitability ratios have shown some fluctuations over the past five years.
- Operating return on assets (Operating ROA) has ranged from 6.56% to 13.17% during this period. It indicates that for every dollar of assets, the company generated a profit of 6.56% to 13.17% before interest and taxes. The decreasing trend may suggest that the company's operating efficiency declined over the years.
- Return on assets (ROA) has also varied, ranging from 3.72% to 13.16%. This ratio measures the company's overall profitability in relation to its total assets. The lower ROA in recent years might indicate that Campbell Soup Company's ability to generate profits from its assets has weakened.
- Return on total capital has been fluctuating significantly, with values ranging from 26.52% to 83.77%. This ratio highlights the company's ability to generate returns for all providers of capital. The drastic change in this ratio indicates changes in the company's capital structure and the efficiency of capital utilization.
- Return on equity (ROE) has also displayed a fluctuating trend, varying from 14.94% to 63.52%. This ratio signifies the return generated for the shareholders' equity investment. The decreasing trend over recent years suggests that shareholders' returns have been getting lower.
In conclusion, Campbell Soup Company's profitability ratios show mixed performance over the years, implying a need for the company to focus on improving operational efficiency, asset utilization, and capital management to enhance overall profitability.