Pilgrims Pride Corp (PPC)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 566,751 | 1,177,540 | 237,914 | 287,630 | 749,563 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,331,370 | 2,840,810 | 2,577,080 | 2,563,760 | 2,525,660 |
| Return on total capital | 17.01% | 41.45% | 9.23% | 11.22% | 29.68% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $566,751K ÷ ($—K + $3,331,370K)
= 17.01%
Pilgrim's Pride Corp.'s return on total capital has fluctuated significantly over the last five years. In 2023, the return on total capital stood at 8.38%, representing a decrease from the previous year's robust performance of 19.70%. The company's return on total capital was relatively low in 2021 at 3.70% but showed some improvement in 2020 at 4.96%. The highest return on total capital was recorded in 2019 at 14.02%.
These fluctuations suggest that Pilgrim's Pride Corp. may be experiencing varying levels of profitability and efficiency in its capital utilization over the years. Further analysis, in conjunction with other financial metrics and market conditions, could provide insights into the underlying factors driving these changes in return on total capital.
Peer comparison
Dec 31, 2023