Performance Food Group Co (PFGC)
Return on total capital
| Sep 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 760,100 | 808,500 | 822,300 | 801,100 | 762,000 | 663,900 | 576,100 | 480,800 | 350,000 | 268,300 | 213,400 | 219,800 | 207,100 | -99,400 | -149,700 | -132,000 | -105,300 | 219,300 | 304,800 | 296,400 |
| Long-term debt | US$ in thousands | 3,926,000 | 3,215,400 | 3,502,000 | 3,710,500 | 3,460,100 | 3,532,400 | 3,679,500 | 3,664,000 | 3,908,800 | 3,721,100 | 3,846,800 | 3,669,700 | 2,240,500 | 2,149,100 | 2,507,800 | 2,551,400 | 2,249,300 | 3,186,400 | 2,188,400 | 2,212,100 |
| Total stockholders’ equity | US$ in thousands | 4,208,200 | 3,953,400 | 3,861,700 | 3,828,300 | 3,745,500 | 3,581,700 | 3,496,500 | 3,400,700 | 3,299,500 | 3,204,500 | 3,160,900 | 3,123,500 | 2,106,100 | 2,057,700 | 2,046,900 | 2,020,700 | 2,010,600 | 1,823,200 | 1,378,500 | 1,333,100 |
| Return on total capital | 9.34% | 11.28% | 11.17% | 10.63% | 10.58% | 9.33% | 8.03% | 6.81% | 4.86% | 3.87% | 3.05% | 3.24% | 4.76% | -2.36% | -3.29% | -2.89% | -2.47% | 4.38% | 8.55% | 8.36% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $760,100K ÷ ($3,926,000K + $4,208,200K)
= 9.34%
Performance Food Group Co's return on total capital has shown some fluctuations over the past few quarters. The trend in the return on total capital has generally been positive, with the ratio improving from negative figures in early 2021 to positive figures in late 2021 and early 2022.
The return on total capital reached a peak of 11.28% in March 2024 and has ranged between 3.05% and 11.28% since December 2021. This indicates that the company has been generating a return on its invested capital in the range of 3% to 11% over the past few quarters.
Overall, the recent return on total capital figures exceeding 10% suggest that Performance Food Group Co has been relatively efficient in generating profits from both its equity and debt capital. However, the company should continue to monitor and improve its capital allocation strategies to sustain and potentially increase its return on total capital in the future.
Peer comparison
Sep 30, 2024