Simply Good Foods Co (SMPL)
Return on total capital
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 206,497 | 205,760 | 172,450 | 112,417 | 111,777 |
| Long-term debt | US$ in thousands | 397,485 | 281,649 | 403,022 | 451,269 | 596,879 |
| Total stockholders’ equity | US$ in thousands | 1,727,490 | 1,571,100 | 1,438,660 | 1,188,800 | 1,139,330 |
| Return on total capital | 9.72% | 11.11% | 9.36% | 6.85% | 6.44% |
August 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $206,497K ÷ ($397,485K + $1,727,490K)
= 9.72%
Simply Good Foods Co's return on total capital has fluctuated over the past five years, ranging from 6.44% in August 2020 to 11.11% in August 2023. In the most recent period ending August 31, 2024, the return on total capital stood at 9.72%. This indicates the company's ability to generate profits relative to the total capital employed in its operations has slightly decreased compared to the previous year but remains at a respectable level. Overall, the trend shows some variability but generally demonstrates the company's capacity to efficiently utilize its capital resources to generate returns for its stakeholders.
Peer comparison
Aug 31, 2024