Campbell Soup Company Common Stock (CPB)

Return on total capital

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Jul 28, 2024 Apr 30, 2024 Apr 28, 2024 Jan 31, 2024 Jan 28, 2024 Oct 31, 2023 Oct 29, 2023 Jul 31, 2023 Jul 30, 2023 Apr 30, 2023 Jan 31, 2023 Jan 29, 2023 Oct 31, 2022 Oct 30, 2022 Jul 31, 2022 May 1, 2022 Apr 30, 2022
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 849,000 770,000 655,000 895,000 1,134,000 1,272,000 1,379,000 1,327,000 1,284,000 1,187,000 1,111,000 1,196,000 1,359,000 1,507,000 1,349,000 1,294,000 1,152,000 936,000 1,134,000 1,215,000
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 3,910,000 3,842,000 3,794,000 3,794,000 3,913,000 3,913,000 3,849,000 3,849,000 3,757,000 3,755,000 3,663,000 3,661,000 3,588,000 3,601,000 3,599,000 3,467,000 3,467,000 3,333,000 3,393,000 3,393,000
Return on total capital 21.71% 20.04% 17.26% 23.59% 28.98% 32.51% 35.83% 34.48% 34.18% 31.61% 30.33% 32.67% 37.88% 41.85% 37.48% 37.32% 33.23% 28.08% 33.42% 35.81%

January 31, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $849,000K ÷ ($—K + $3,910,000K)
= 21.71%

Campbell Soup Company Common Stock exhibited fluctuations in its return on total capital over the analyzed period. The return on total capital started at 35.81% in April 2022, dipped to 28.08% in July 2022, and then saw an increase to 37.32% in October 2022. The metric continued to rise, reaching a peak of 41.85% in January 2023, indicating strong capital efficiency during that period.

However, there was a slight decline in return on total capital in the subsequent quarters, with percentages ranging from 30.33% to 34.18% up to October 2023. This trend continued into the first half of 2024, with the metric decreasing to 28.98% by April 2024. Notably, a significant drop was observed by July 2024, with the return on total capital falling to 17.26%, suggesting potential challenges in capital utilization.

By the end of the period in January 2025, the return on total capital showed a modest recovery, standing at 21.71%. Overall, despite some fluctuations, Campbell Soup Company Common Stock maintained relatively healthy return on total capital figures, indicating varying levels of capital efficiency and effectiveness in generating returns for its stakeholders during the analyzed timeframe.