Simply Good Foods Co (SMPL)

Return on total capital

		Aug 31, 2024	May 25, 2024	Feb 24, 2024	Nov 25, 2023	Aug 26, 2023	May 27, 2023	Feb 25, 2023	Nov 26, 2022	Aug 27, 2022	May 28, 2022	Feb 26, 2022	Nov 27, 2021	Aug 28, 2021	May 29, 2021	Feb 27, 2021	Nov 28, 2020	Aug 29, 2020	May 30, 2020	Feb 29, 2020	Nov 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	209,691	217,687	212,738	206,291	205,760	192,693	193,266	184,715	172,450	164,037	137,956	93,064	112,417	52,810	86,003	159,721	111,777	101,886	53,276	10,557
Long-term debt	US$ in thousands	397,485	237,661	237,641	272,032	281,649	320,900	362,622	396,994	403,022	402,594	426,916	427,017	451,269	500,154	548,884	572,923	596,879	624,752	624,076	638,034
Total stockholders’ equity	US$ in thousands	1,727,490	1,693,310	1,647,480	1,607,180	1,571,100	1,530,820	1,491,920	1,463,360	1,438,660	1,437,320	1,401,050	1,209,610	1,188,800	1,168,410	1,160,140	1,183,310	1,139,330	1,173,730	1,123,410	1,072,410
Return on total capital		9.87%	11.27%	11.29%	10.98%	11.11%	10.41%	10.42%	9.93%	9.36%	8.92%	7.55%	5.69%	6.85%	3.16%	5.03%	9.09%	6.44%	5.67%	3.05%	0.62%

August 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $209,691K ÷ ($397,485K + $1,727,490K)
= 9.87%

Simply Good Foods Co has displayed varying return on total capital figures over the past several periods. The return on total capital has ranged from a low of 0.62% in November 2019 to a high of 11.29% in February 2024. The company's return on total capital has generally shown an upward trend from 2021 to 2024, with occasional fluctuations. The latest reported return on total capital for August 2024 stands at 9.87%, indicating a solid performance in utilizing its total capital to generate profits. Overall, the company's return on total capital metric demonstrates its ability to effectively generate returns for its capital providers over the analyzed periods.