Campbell’s Co (CPB)
Profitability ratios
Return on sales
| Jul 31, 2025 | Jul 31, 2024 | Jul 28, 2024 | Jul 31, 2023 | Jul 30, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 30.42% | 30.83% | 11.19% | 31.17% | 15.03% |
| Operating profit margin | 10.96% | 13.65% | 10.38% | 14.02% | 14.02% |
| Pretax margin | 7.76% | 7.86% | 7.86% | 12.06% | 12.06% |
| Net profit margin | 5.87% | 5.88% | 5.88% | 9.17% | 9.17% |
The profitability ratios of Campbell’s Co exhibit notable fluctuations over the analyzed periods. The gross profit margin demonstrates considerable variability, with values rising from 15.03% on July 30, 2023, to a peak of 31.17% on July 31, 2023, before declining significantly to 11.19% on July 28, 2024, and subsequently increasing again to approximately 30.83% and 30.42% by July 31, 2024, and July 31, 2025, respectively. This pattern indicates recent volatility in gross profitability, possibly reflecting changes in the cost of goods sold or pricing strategies.
The operating profit margin remains relatively stable but shows a downward trend from the initial value of 14.02% across July 30 and 31, 2023, to 10.38% on July 28, 2024, and then recovers modestly to 13.65% and 10.96% by July 2024 and July 2025, respectively. This suggests some pressure on operating efficiency, with occasional improvements that do not fully offset earlier declines.
Assessing pretax margins reveals a decline from 12.06% in July 2023 to approximately 7.86% on July 28, 2024, and slightly decreasing further to 7.76% by July 2025. The narrow margin indicates increased costs or expenses that reduce the pre-tax profitability.
The net profit margin follows a similar trend, decreasing from 9.17% in mid-2023 to 5.88% in July 2024, with a marginal reduction to 5.87% by July 2025. This persistent decline underscores diminished net profitability, possibly attributable to higher operating costs, interest expenses, or other financial charges impacting bottom-line results.
Overall, Campbell’s Co’s profitability ratios reflect periods of volatility and declining trends, particularly in net and pretax margins, highlighting challenges in maintaining consistent profitability levels over the observed periods.
Return on investment
| Jul 31, 2025 | Jul 31, 2024 | Jul 28, 2024 | Jul 31, 2023 | Jul 30, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.55% | 8.63% | 6.56% | 10.88% | 10.88% |
| Return on assets (ROA) | 4.04% | 3.72% | 3.72% | 7.12% | 7.12% |
| Return on total capital | 28.79% | 26.36% | 26.52% | 35.82% | 35.95% |
| Return on equity (ROE) | 15.42% | 14.94% | 14.94% | 23.42% | 23.44% |
The analysis of Campbell’s Co profitability ratios over the period from July 2023 to July 2025 reveals notable trends in the company's profitability efficiency.
The Operating Return on Assets (Operating ROA) demonstrates a significant decline from 10.88% as of July 2023 to a low of 6.56% by July 2024 before recovering slightly to 8.63% in July 2025. This suggests that the company's core operating efficiency, in terms of generating operating income from its assets, experienced a deterioration during the 2024 fiscal year, indicating potential operational challenges or increased costs. The partial recovery in 2025 points toward some stabilization or improvement in operational performance.
The Return on Assets (ROA), reflecting overall asset efficiency inclusive of non-operating factors, follows a similar downward trend, decreasing from 7.12% in July 2023 to a low of 3.72% by July 2024, before a modest increase to 3.72% and then 4.04% in subsequent periods. This decline underscores a decrease in overall asset productivity, possibly due to lower profit margins or increased asset base without proportional profit growth.
Return on Total Capital shows a decline from approximately 36% in July 2023 to about 26.5% in July 2024, indicating reduced profitability relative to the company's total capital base. By July 2025, this ratio trends upward slightly to nearly 28.8%, suggesting some improvement in capital utilization efficiency but still below the earlier levels.
Return on Equity (ROE) also exhibits a notable decline from over 23% in July 2023 to approximately 15% in July 2024, reflecting diminished profitability attributable to shareholders during this period. The ratio remains relatively stable in 2024 but slightly improves to 15.42% in 2025, indicating a marginal recovery in shareholders’ returns.
Overall, the data indicates that Campbell’s Co experienced a period of reduced profitability during the 2024 fiscal year, with all key ratios reflecting the challenges in operational performance and asset utilization, followed by a period of slight recovery in 2025. This trend may warrant further investigation into underlying factors such as cost management, market conditions, or strategic shifts affecting profitability.