Performance Food Group Co (PFGC)
Return on total capital
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 762,000 | 350,000 | 207,100 | -105,300 | 283,700 |
| Long-term debt | US$ in thousands | 3,460,100 | 3,908,800 | 2,240,500 | 2,249,300 | 1,202,900 |
| Total stockholders’ equity | US$ in thousands | 3,745,500 | 3,299,500 | 2,106,100 | 2,010,600 | 1,298,200 |
| Return on total capital | 10.58% | 4.86% | 4.76% | -2.47% | 11.34% |
June 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $762,000K ÷ ($3,460,100K + $3,745,500K)
= 10.58%
Performance Food Group Co's return on total capital has shown some fluctuations over the past five years. In 2023, the return on total capital was 10.58%, representing an increase from the previous year's 4.86%. This improvement indicates that the company has been more efficient in utilizing its total capital to generate profits.
Comparing to 2021, the return on total capital was slightly higher at 4.76%. However, in 2020, the company experienced a negative return on total capital of -2.47%, suggesting that the company was not effectively utilizing its total capital to generate profits in that particular year.
The highest return on total capital was observed in 2019 at 11.34%, indicating that the company was highly efficient in generating profits relative to its total capital that year.
Overall, Performance Food Group Co's return on total capital has shown variability over the past five years, with the most recent year showing a significant improvement compared to the previous year. It is important for the company to continue monitoring and improving its efficiency in utilizing its total capital to generate sustainable profits in the future.
Peer comparison
Jun 30, 2023