Performance Food Group Co (PFGC)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 829,000 | 762,000 | 350,000 | 207,100 | -105,300 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,126,900 | 3,745,500 | 3,299,500 | 2,106,100 | 2,010,600 |
| Return on total capital | 20.09% | 20.34% | 10.61% | 9.83% | -5.24% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $829,000K ÷ ($—K + $4,126,900K)
= 20.09%
Performance Food Group Co's return on total capital has shown significant improvement over the past five years. Starting at a negative return of -5.24% in June 2020, the company managed to turn around its performance and achieve a positive return of 9.83% in June 2021. This positive trend continued as the return on total capital further increased to 10.61% in June 2022.
The company's efficiency in utilizing its total capital continued to strengthen, with the return on total capital reaching 20.34% in June 2023 and holding steady at 20.09% in June 2024. This indicates that Performance Food Group Co has been successful in generating more value from its capital investments, suggesting improved profitability and effective capital management.
Overall, the increasing trend in return on total capital reflects positively on the company's financial performance and management's ability to generate higher returns on the total capital employed. It also demonstrates the company's potential for sustainable growth and value creation for its shareholders.
Peer comparison
Jun 30, 2024