National Beverage Corp (FIZZ)
Return on total capital
| Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 218,510 | 218,510 | 186,684 | 186,684 | 176,054 |
| Long-term debt | US$ in thousands | — | — | — | 0 | — |
| Total stockholders’ equity | US$ in thousands | 559,512 | 559,512 | 372,487 | 372,487 | 239,438 |
| Return on total capital | 39.05% | 39.05% | 50.12% | 50.12% | 73.53% |
April 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $218,510K ÷ ($—K + $559,512K)
= 39.05%
Based on the data provided for National Beverage Corp, the return on total capital has shown a downward trend over the years.
As of April 30, 2022, the return on total capital stood at an impressive 73.53%, indicating that the company was able to generate significant returns relative to its total capital employed. However, by April 29, 2023, the return on total capital had decreased to 50.12%, showing a decline in the company's efficiency in utilizing its total capital to generate profits.
This trend continued into the following years, with the return on total capital remaining at 50.12% on April 30, 2023, before further decreasing to 39.05% as of April 27, 2024. This declining trend suggests that National Beverage Corp may be facing challenges in maintaining or increasing its profitability relative to the capital invested in the business.
Overall, the decreasing trend in the return on total capital for National Beverage Corp raises concerns about the company's ability to efficiently utilize its total capital to generate returns for its shareholders. Further analysis and investigation may be needed to identify the underlying reasons for this decline and to implement strategies to improve the company's financial performance.
Peer comparison
Apr 30, 2024