Campbell’s Co (CPB)
Return on total capital
| Jul 31, 2025 | Jul 31, 2024 | Jul 28, 2024 | Jul 31, 2023 | Jul 30, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,124,000 | 1,000,000 | 1,006,000 | 1,312,000 | 1,316,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,904,000 | 3,794,000 | 3,794,000 | 3,663,000 | 3,661,000 |
| Return on total capital | 28.79% | 26.36% | 26.52% | 35.82% | 35.95% |
July 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,124,000K ÷ ($—K + $3,904,000K)
= 28.79%
The data indicates that Campbell’s Co's return on total capital experienced notable fluctuations over the period analyzed. As of July 30, 2023, the return was 35.95%, with a marginal dip to 35.82% by July 31, 2023, suggesting stable profitability and efficient utilization of capital during this period. However, a significant decline is observed by July 28, 2024, where the return drops to 26.52%, followed closely by a slight decrease to 26.36% by July 31, 2024. This substantial reduction indicates a decline in the company's efficiency in generating profits from its total capital base, possibly due to increased capital investments, operational challenges, or changes in market conditions affecting profitability.
Subsequently, the return on total capital shows a modest recovery, rising again to 28.79% as of July 31, 2025. This upward trend suggests an improvement in operational efficiency or profitability, potentially attributable to strategic adjustments, cost controls, or market stabilization. Overall, the recent trend reflects a period of transition, with a notable dip followed by a partial recovery, emphasizing the importance of monitoring further developments to assess the company's ongoing ability to generate returns on its invested capital.