Campbell Soup Company Common Stock (CPB)
Return on total capital
| Jul 28, 2024 | Jul 30, 2023 | Jul 31, 2022 | Aug 1, 2021 | Aug 2, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,006,000 | 1,316,000 | 1,164,000 | 1,540,000 | 2,147,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,794,000 | 3,661,000 | 3,331,000 | 3,152,000 | 2,563,000 |
| Return on total capital | 26.52% | 35.95% | 34.94% | 48.86% | 83.77% |
July 28, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,006,000K ÷ ($—K + $3,794,000K)
= 26.52%
The Return on Total Capital for Campbell Soup Company Common Stock has exhibited a declining trend over the past five years. The return stood at 26.52% as of July 28, 2024, down from 35.95% on July 30, 2023, and 34.94% on July 31, 2022. Furthermore, the return on total capital was notably lower than in prior years, with figures of 48.86% on August 1, 2021, and 83.77% on August 2, 2020. This downward trend suggests potential challenges in effectively utilizing the company's total capital to generate returns for shareholders. Further analysis is recommended to identify factors contributing to this decline and explore opportunities for improvement in capital allocation and operational efficiency.
Peer comparison
Jul 28, 2024