Campbell Soup Company Common Stock (CPB)
Profitability ratios
Return on sales
| Jul 31, 2024 | Jul 28, 2024 | Jul 31, 2023 | Jul 30, 2023 | Jul 31, 2022 | |
|---|---|---|---|---|---|
| Gross profit margin | 30.83% | 11.19% | 31.17% | 15.03% | 30.68% |
| Operating profit margin | 10.38% | 10.38% | 14.02% | 14.02% | 13.58% |
| Pretax margin | 7.86% | 7.86% | 12.06% | 12.06% | 11.39% |
| Net profit margin | 5.88% | 5.88% | 9.17% | 9.17% | 8.84% |
Campbell Soup Company's profitability ratios show fluctuating trends over the period indicated. The gross profit margin, which measures the percentage of revenue retained after accounting for the cost of goods sold, has been inconsistent. It stood at 30.68% in July 2022, dropped to 15.03% in July 2023, improved to 31.17% in July 2023, declined to 11.19% in July 2024, and then recovered slightly to 30.83% in July 2024.
Similarly, the operating profit margin, which indicates the proportion of revenue left after deducting operating expenses, has also shown variability. It was 13.58% in July 2022, increased to 14.02% in both July 2023 and July 2023, decreased to 10.38% in July 2024, and remained unchanged at 10.38% in July 2024.
The pretax margin, representing the percentage of revenue that translates into profit before taxes, followed a similar pattern. It started at 11.39% in July 2022, rose to 12.06% in both July 2023 and July 2023, dropped to 7.86% in July 2024, and maintained the same level in July 2024.
Lastly, the net profit margin, which shows the proportion of revenue that converts into net income, exhibited a comparable trend. It began at 8.84% in July 2022, climbed to 9.17% in both July 2023 and July 2023, declined to 5.88% in July 2024, and remained steady at 5.88% in July 2024.
Overall, the fluctuating profitability margins indicate a mixed performance for Campbell Soup Company, highlighting the need for further analysis to understand the factors driving these changes in profitability.
Return on investment
| Jul 31, 2024 | Jul 28, 2024 | Jul 31, 2023 | Jul 30, 2023 | Jul 31, 2022 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.56% | 6.56% | 10.88% | 10.88% | 9.78% |
| Return on assets (ROA) | 3.72% | 3.72% | 7.12% | 7.12% | 6.37% |
| Return on total capital | 26.36% | 26.52% | 35.82% | 35.95% | 34.91% |
| Return on equity (ROE) | 14.94% | 14.94% | 23.42% | 23.44% | 22.73% |
Based on the provided data, let's analyze the profitability ratios of Campbell Soup Company Common Stock:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA for July 31, 2022, was 9.78%, showing the company generated 9.78 cents of operating profit for every dollar of assets.
- The Operating ROA improved to 10.88% by July 30, 2023, and remained consistent at 10.88% by July 31, 2023.
- However, there was a decline in Operating ROA to 6.56% by both July 28, 2024, and July 31, 2024.
2. Return on Assets (ROA):
- The ROA for July 31, 2022, stood at 6.37%, indicating the company generated a profit of 6.37 cents for every dollar of assets.
- The ROA increased to 7.12% by July 30, 2023, and maintained the same level by July 31, 2023.
- There was a decline in ROA to 3.72% by both July 28, 2024, and July 31, 2024, signifying a decreased efficiency in asset utilization.
3. Return on Total Capital:
- The Return on Total Capital was 34.91% on July 31, 2022, indicating a return of 34.91 cents for every dollar of total capital employed.
- It improved to 35.95% by July 30, 2023, and slightly decreased to 35.82% by July 31, 2023.
- However, there was a notable drop in Return on Total Capital to 26.52% by July 28, 2024, and further down to 26.36% by July 31, 2024, suggesting a less efficient use of total capital.
4. Return on Equity (ROE):
- The ROE for July 31, 2022, was 22.73%, indicating that shareholders received a return of 22.73 cents for every dollar of equity invested.
- The ROE improved to 23.44% by July 30, 2023, and remained relatively stable at 23.42% by July 31, 2023.
- However, there was a significant decline in ROE to 14.94% by both July 28, 2024, and July 31, 2024, suggesting a decrease in shareholders' returns.
Overall, the trend in profitability ratios shows a mixed performance for Campbell Soup Company Common Stock, with fluctuations in efficiency and returns on assets, capital, and equity over the analyzed periods. Further investigation into the underlying factors driving these changes would be necessary to gain a deeper understanding of the company's financial health and performance.