United Natural Foods Inc (UNFI)
Return on total capital
| Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | Apr 27, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -21,000 | 26,000 | 145,000 | 290,000 | 382,000 | 450,000 | 459,000 | 468,000 | 443,000 | 435,000 | 387,000 | 392,114 | 416,715 | 295,033 | -173,140 | -139,115 | -167,734 | -547,879 | -162,730 | -236,732 |
| Long-term debt | US$ in thousands | 2,180,000 | 2,301,000 | 1,956,000 | 2,032,000 | 2,077,000 | 2,499,000 | 2,109,000 | 2,391,000 | 2,323,000 | 2,390,000 | 2,175,000 | 2,327,400 | 2,387,240 | 2,633,400 | 2,578,980 | 2,560,880 | 2,935,980 | 3,070,460 | 3,002,550 | 3,108,880 |
| Total stockholders’ equity | US$ in thousands | 1,692,000 | 1,699,000 | 1,743,000 | 1,841,000 | 1,842,000 | 1,835,000 | 1,791,000 | 1,785,000 | 1,684,000 | 1,589,000 | 1,515,000 | 1,302,440 | 1,230,220 | 1,150,140 | 1,145,000 | 1,169,820 | 1,102,060 | 1,126,560 | 1,507,040 | 1,532,220 |
| Return on total capital | -0.54% | 0.65% | 3.92% | 7.49% | 9.75% | 10.38% | 11.77% | 11.21% | 11.06% | 10.93% | 10.49% | 10.80% | 11.52% | 7.80% | -4.65% | -3.73% | -4.15% | -13.05% | -3.61% | -5.10% |
January 27, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-21,000K ÷ ($2,180,000K + $1,692,000K)
= -0.54%
United Natural Foods Inc.'s return on total capital has been on a declining trend over the past few quarters. The return on total capital was 0.69% in Q2 2024, down from 1.72% in Q1 2024, and significantly lower compared to 9.04% in Q4 2022. This indicates that the company's ability to generate profits from the total capital employed has weakened.
The decreasing trend in return on total capital could be a cause for concern as it reflects a diminishing efficiency in generating returns on the total invested capital. It is essential for the company to analyze the factors leading to this decline and take necessary actions to improve its return on total capital in the future quarters.
Peer comparison
Jan 27, 2024