National Beverage Corp (FIZZ)
Return on total capital
| Apr 30, 2025 | Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 218,510 | 218,510 | 186,684 | 186,684 |
| Long-term debt | US$ in thousands | — | — | — | — | 0 |
| Total stockholders’ equity | US$ in thousands | 443,999 | 559,512 | 559,512 | 372,487 | 372,487 |
| Return on total capital | 0.00% | 39.05% | 39.05% | 50.12% | 50.12% |
April 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $443,999K)
= 0.00%
The analysis of National Beverage Corp's return on total capital over the specified periods reveals significant fluctuations. As of April 29, and April 30, 2023, the return on total capital stood at 50.12%, indicating a strong and efficient utilization of the company's total capital base at that time. This figure suggests that the company was generating substantial operating income relative to its invested capital, reflecting favorable operational performance and successful capital deployment.
By April 27 and April 30, 2024, the return on total capital decreased to 39.05%. This decline suggests a reduction in the efficiency with which the company utilized its total capital to generate earnings, potentially attributable to increased capital base without a proportional increase in operating income, or reduced operational profitability. The decline represents a notable weakening in the company's capital efficiency compared to the previous year, though the return remains relatively robust.
However, by April 30, 2025, the return on total capital dropped to zero percent. This drastic change indicates that the company did not generate any operating income relative to its total capital during this period, which could be due to several factors such as significant impairments, losses, or extraordinary circumstances impacting profitability. A zero percent return essentially signifies that the company's total capital was not contributing to any measurable earnings, which raises concerns about its operational performance and efficiency during that period.
Overall, the trend shows a decline from a strong position in 2023 towards negligible performance in 2025, suggesting a deteriorating efficiency in capital utilization over this timeframe. This pattern warrants further investigation into the underlying causes, including operational challenges, changes in cost structure, or extraordinary items affecting profit generation.
Peer comparison
Apr 30, 2025