J & J Snack Foods Corp (JJSF)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 117,545 | 109,518 | 61,799 | 71,218 | 17,194 |
| Long-term debt | US$ in thousands | 0 | 27,000 | 55,000 | 0 | — |
| Total stockholders’ equity | US$ in thousands | 956,970 | 911,518 | 863,169 | 845,654 | 809,498 |
| Return on total capital | 12.28% | 11.67% | 6.73% | 8.42% | 2.12% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $117,545K ÷ ($0K + $956,970K)
= 12.28%
The return on total capital for J & J Snack Foods Corp has shown a positive trend over the past five years, increasing from 2.12% in 2020 to 12.28% in 2024. This indicates that the company has been able to generate more profit relative to its total capital employed each year.
The significant increase in the return on total capital from 2020 to 2024 demonstrates an improvement in the company's efficiency in utilizing its total capital to generate returns for investors. This upward trend suggests that J & J Snack Foods Corp has been successful in managing its capital effectively and improving its profitability over the years.
Overall, the steady improvement in return on total capital reflects positively on the company's financial performance and indicates a positive outlook for its future profitability and value creation for shareholders.