Performance Food Group Co (PFGC)
Return on total capital
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 829,000 | 762,000 | 350,000 | 207,100 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,472,400 | 4,126,900 | 3,745,500 | 3,299,500 | 2,106,100 |
| Return on total capital | 0.00% | 20.09% | 20.34% | 10.61% | 9.83% |
June 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $4,472,400K)
= 0.00%
The analysis of Performance Food Group Co.'s return on total capital over the period from June 30, 2021, to June 30, 2025, reveals significant fluctuations. In fiscal 2021, the return on total capital was 9.83%, indicating a relatively modest efficiency in generating profits from the invested capital. This figure increased notably in the subsequent year, reaching 10.61% as of June 30, 2022, suggesting improvements in operational performance or capital utilization.
The most pronounced change occurred by June 30, 2023, when the return surged to 20.34%. This marked jump indicates a substantial enhancement in the company's ability to generate profit from its total capital base, likely driven by increased operational efficiency, higher margins, or strategic changes that positively impacted profitability. The ratio maintained a high level into the fiscal year ending June 30, 2024, with a slight decline to 20.09%. This slight decrease may reflect some stabilization or slight shifts in operational performance, but the ratio remained at a high level indicating continued robust capital efficiency.
However, by June 30, 2025, the return on total capital drops sharply to zero. Such a drastic decline could result from extraordinary circumstances such as asset write-downs, restructurings, impairments, or other financial anomalies that fundamentally affect the company's capacity to generate returns from its total capital base in that period. Alternatively, it could reflect accounting or reporting changes that led to a reported zero return.
Overall, the trajectory illustrates a period of rapid improvement culminating in a peak in mid-2023, followed by a dramatic decline, suggesting a period of operational or financial upheaval around 2025. Further analysis would benefit from detailed contextual information regarding the company's activities, financial events, and strategic decisions during this period.
Peer comparison
Jun 30, 2025