JM Smucker Company (SJM)
Return on total capital
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,305,800 | 157,500 | 1,023,800 | 1,386,800 | 1,223,100 |
| Long-term debt | US$ in thousands | 6,773,700 | 4,314,200 | 4,310,600 | 3,516,800 | 5,373,300 |
| Total stockholders’ equity | US$ in thousands | 7,693,900 | 7,290,800 | 8,140,100 | 8,124,800 | 8,190,900 |
| Return on total capital | 9.03% | 1.36% | 8.22% | 11.91% | 9.02% |
April 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,305,800K ÷ ($6,773,700K + $7,693,900K)
= 9.03%
The return on total capital for JM Smucker Company has varied over the past five years. In the most recent fiscal year (ending April 30, 2024), the company generated a return on total capital of 9.03%, marking an improvement compared to the previous year's 1.36%.
However, the return on total capital was lower than the levels seen in the fiscal years ending April 30, 2021 (11.91%) and April 30, 2020 (9.02%). The return on total capital for the fiscal year ending April 30, 2022, was 8.22%.
Overall, JM Smucker Company's return on total capital has shown fluctuations in recent years, which may be influenced by changing market conditions, investment decisions, and operational performance. It will be important for the company to sustain or improve upon its return on total capital to demonstrate efficient utilization of capital resources for generating returns for its stakeholders.