United Natural Foods Inc (UNFI)
Return on total capital
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Aug 1, 2020 | Aug 3, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 145,000 | 459,000 | 387,000 | -173,000 | -163,000 |
| Long-term debt | US$ in thousands | 1,956,000 | 2,109,000 | 2,175,000 | 2,578,980 | 3,002,550 |
| Total stockholders’ equity | US$ in thousands | 1,743,000 | 1,791,000 | 1,515,000 | 1,145,000 | 1,507,040 |
| Return on total capital | 3.92% | 11.77% | 10.49% | -4.65% | -3.61% |
July 29, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $145,000K ÷ ($1,956,000K + $1,743,000K)
= 3.92%
United Natural Foods Inc.'s return on total capital has exhibited a fluctuating trend over the past five years. In the most recent fiscal year ending July 29, 2023, the return on total capital decreased to 4.24%, representing a significant decline from the previous year's 9.04%. This decline may indicate a potential reduction in the company's efficiency in generating returns from its total capital.
In the fiscal year ending July 30, 2022, United Natural Foods Inc. experienced a notable increase in return on total capital to 9.04%, reflecting improved capital utilization and profitability compared to the prior fiscal year. This positive performance suggests effective management of the company's capital resources to generate higher returns.
Similarly, in the fiscal year ending July 31, 2021, the return on total capital stood at 9.00%, demonstrating consistency with the previous year and highlighting the company's ability to sustain its capital efficiency and return generation.
The fiscal year ending August 1, 2020, also saw a commendable return on total capital of 8.77%, indicating the company's continued effectiveness in utilizing its total capital to generate returns for shareholders.
Notably, in the fiscal year ending August 3, 2019, the return on total capital was at a comparatively lower level of 3.41%, reflecting a period of reduced capital efficiency. This lower return suggests potential challenges in effectively leveraging the company's total capital to generate satisfactory returns for investors.
In conclusion, United Natural Foods Inc.'s return on total capital has shown variations over the past five years, with fluctuations indicating changes in the company's capital efficiency and return generation. The decline in the most recent year warrants further analysis to understand the factors influencing the company's capital utilization and profitability.
Peer comparison
Jul 29, 2023