Simply Good Foods Co (SMPL)

Return on total capital

		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	Aug 31, 2019	May 25, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	21,945	72,284
Long-term debt	US$ in thousands	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	190,259	190,429
Total stockholders’ equity	US$ in thousands	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	712,868	753,732
Return on total capital		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%	2.43%	7.66%

February 24, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $212,738K ÷ ($237,641K + $1,647,480K)
= 11.29%

The return on total capital for Simply Good Foods Co has shown fluctuations over the past few quarters. The most recent data from February 24, 2024, indicates a return on total capital of 11.29%, which is an improvement compared to the previous quarter.

Looking at the trend over the past few quarters, we see that the return on total capital has generally been increasing since May 2021. This suggests that the company's efficiency in generating returns from its total capital has been improving.

However, it's important to note that there have been periods of decline in the return on total capital, such as in November 2021 and February 2020. These fluctuations could be influenced by various factors affecting the company's operations and profitability.

Overall, the return on total capital metric reflects the company's ability to generate profits from both its debt and equity investment, and the positive trend observed in recent quarters indicates an improving financial performance in terms of capital utilization.