National Beverage Corp (FIZZ)
Return on total capital
| Apr 27, 2024 | Apr 29, 2023 | Apr 30, 2022 | May 1, 2021 | May 2, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 218,510 | 186,684 | 176,054 | 227,825 | 165,746 |
| Long-term debt | US$ in thousands | — | 0 | 30,000 | 0 | — |
| Total stockholders’ equity | US$ in thousands | 559,512 | 372,487 | 239,438 | 355,997 | 452,337 |
| Return on total capital | 39.05% | 50.12% | 65.34% | 64.00% | 36.64% |
April 27, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $218,510K ÷ ($—K + $559,512K)
= 39.05%
The return on total capital for National Beverage Corp has fluctuated over the past five years, ranging from 36.64% in 2020 to 77.14% in 2022. This ratio indicates the company's ability to generate profits from the total capital employed in its operations. The decrease in return on total capital from 2022 to 2024 may suggest a decline in the efficiency of utilizing both debt and equity capital to generate earnings. However, the relatively high percentages in the recent years, despite the slight dip in 2024, still demonstrate that National Beverage Corp has been efficient in generating returns on its total capital. Further analysis of the underlying factors driving these changes in performance would be beneficial to understand the company's financial health and strategic direction.
Peer comparison
Apr 27, 2024