Performance Food Group Co (PFGC)
Return on total capital
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 697,600 | 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 |
| Long-term debt | US$ in thousands | 5,691,200 | 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 |
| Total stockholders’ equity | US$ in thousands | 4,257,200 | 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 |
| Return on total capital | 7.01% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $697,600K ÷ ($5,691,200K + $4,257,200K)
= 7.01%
Performance Food Group Co's return on total capital has shown fluctuations over the periods provided. The ratio increased steadily from December 31, 2019, reaching a peak of 11.28% on March 31, 2024, before declining slightly to 7.01% by December 31, 2024.
The company's return on total capital remained positive for the most part, indicating that it was generating returns above the cost of both debt and equity capital invested in the business. However, there were instances, particularly in the middle of 2020 and early 2021, where the return on total capital turned negative, suggesting the company may have been generating insufficient returns relative to the capital employed during those periods.
Overall, the upward trend in the return on total capital signifies an improvement in the company's profitability and efficiency in utilizing its total capital to generate returns for its stakeholders. However, the slight decline by the end of the data period may warrant further analysis to understand the factors influencing the company's return on capital in more recent periods.
Peer comparison
Dec 31, 2024