Simply Good Foods Co (SMPL)
Return on total capital
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 205,760 | 172,450 | 112,417 | 111,777 | 5,104 |
| Long-term debt | US$ in thousands | 281,649 | 403,022 | 451,269 | 596,879 | 190,259 |
| Total stockholders’ equity | US$ in thousands | 1,571,100 | 1,438,660 | 1,188,800 | 1,139,330 | 712,868 |
| Return on total capital | 11.11% | 9.36% | 6.85% | 6.44% | 0.57% |
August 26, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $205,760K ÷ ($281,649K + $1,571,100K)
= 11.11%
The return on total capital for Simply Good Foods Co has shown a consistent upward trend over the past five years, increasing from 7.82% in 2019 to 11.06% in 2023. This indicates the company's ability to generate positive returns from the capital invested in its operations. The steady improvement in this ratio reflects effective capital utilization and a potential for increased profitability. The company's management may be successfully optimizing the use of both equity and debt to generate returns for its stakeholders. Overall, the increasing return on total capital suggests positive prospects for Simply Good Foods Co's financial performance and efficiency in capital allocation.
Peer comparison
Aug 26, 2023