JM Smucker Company (SJM)
Return on total capital
| Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,305,800 | 266,300 | 286,800 | 281,300 | 157,500 | 1,093,000 | 925,700 | 944,100 | 1,023,800 | 960,500 | 1,216,100 | 1,285,100 | 1,386,800 | 1,494,800 | 1,377,600 | 1,326,600 | 1,223,100 | 1,030,000 | 958,600 | 959,300 |
| Long-term debt | US$ in thousands | 6,773,700 | 8,121,100 | 7,771,700 | 4,315,100 | 4,314,200 | 4,313,300 | 4,312,400 | 4,311,500 | 4,310,600 | 4,309,700 | 4,308,800 | 3,517,500 | 3,516,800 | 3,915,300 | 3,914,500 | 4,672,800 | 5,373,300 | 4,583,300 | 4,584,500 | 4,685,300 |
| Total stockholders’ equity | US$ in thousands | 7,693,900 | 7,560,100 | 7,088,900 | 7,003,400 | 7,290,800 | 8,335,000 | 8,217,300 | 8,144,300 | 8,140,100 | 8,266,900 | 8,286,400 | 8,170,300 | 8,124,800 | 8,211,600 | 8,515,000 | 8,345,200 | 8,190,900 | 8,170,400 | 8,095,300 | 8,007,700 |
| Return on total capital | 9.03% | 1.70% | 1.93% | 2.49% | 1.36% | 8.64% | 7.39% | 7.58% | 8.22% | 7.64% | 9.66% | 11.00% | 11.91% | 12.33% | 11.08% | 10.19% | 9.02% | 8.08% | 7.56% | 7.56% |
April 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 exhibited some variability over the past couple of years. From the data provided, we can see that the return on total capital ranged from a low of 1.36% in April 2023 to a high of 12.33% in January 2021.
Overall, the return on total capital has shown a generally positive trend, with some fluctuations along the way. The company's ability to generate returns on the total capital employed in its operations improved significantly in the early part of the period, reaching a peak of 12.33% in January 2021.
However, there was a slight decline in the return on total capital in the subsequent periods, with occasional fluctuations. In the most recent period reported, April 2024, the return on total capital stood at 9.03%, indicating a solid performance in generating returns relative to the total capital invested.
It is important for investors and stakeholders to continue monitoring the company's return on total capital performance to assess its efficiency in utilizing its capital resources effectively and generating adequate returns for its investors.