Pilgrims Pride Corp (PPC)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,572,659 | 1,472,829 | 1,161,239 | 795,468 | 566,751 | 254,517 | 404,037 | 824,593 | 1,177,537 | 1,342,807 | 1,102,754 | 463,967 | 237,914 | 200,472 | 165,883 | 315,062 | 287,630 | 392,360 | 494,164 | 750,042 |
| Long-term debt | US$ in thousands | 3,206,110 | — | — | — | 3,340,840 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,239,410 | 4,204,590 | 3,731,540 | 3,480,660 | 3,331,370 | 3,077,580 | 3,059,230 | 2,893,610 | 2,840,810 | 2,727,720 | 2,860,200 | 2,781,630 | 2,577,080 | 2,604,240 | 2,582,480 | 2,723,910 | 2,563,760 | 2,420,850 | 2,364,180 | 2,465,910 |
| Return on total capital | 21.12% | 35.03% | 31.12% | 22.85% | 8.49% | 8.27% | 13.21% | 28.50% | 41.45% | 49.23% | 38.56% | 16.68% | 9.23% | 7.70% | 6.42% | 11.57% | 11.22% | 16.21% | 20.90% | 30.42% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,572,659K ÷ ($3,206,110K + $4,239,410K)
= 21.12%
Pilgrims Pride Corp's return on total capital has shown fluctuating trends over the periods provided. The ratio started at a solid 30.42% in March 2020, indicating efficient use of capital to generate profits. However, there was a decline in performance by June 2020, with the ratio dropping to 20.90%.
The trend continued with a further decrease in September 2020 to 16.21% and a significant drop to 11.22% by December 2020. This downward trend persisted into March 2021 with a minimal increase to 11.57%. The ratio hit a low point in June 2021 at 6.42%, implying a potential concern in effectively utilizing total capital.
Subsequently, Pilgrims Pride Corp saw a gradual improvement in its return on total capital, reaching 9.23% by December 2021 and a notable surge to 16.68% by March 2022. The trend continued with substantial growth to 38.56% in June 2022 and a remarkable increase to 49.23% by September 2022, indicating a strong performance.
However, there was a slight decline to 41.45% by December 2022 and further reductions in subsequent periods. Despite the fluctuations, the return on total capital remained above 20% until September 2024. By December 2024, the ratio had decreased to 21.12%, showing a slight downturn in capital efficiency.
Overall, the dynamics of Pilgrims Pride Corp's return on total capital highlight periods of both strong and weaker capital management. It is essential for the company to monitor and improve capital allocation to sustain profitability and long-term growth.
Peer comparison
Dec 31, 2024