Albertsons Companies (ACI)
Return on total capital
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,599,600 | 2,097,000 | 2,454,600 | 2,448,200 | 1,571,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,385,900 | 2,747,500 | 1,610,700 | 3,024,600 | 1,324,300 |
| Return on total capital | 47.24% | 76.32% | 152.39% | 80.94% | 118.63% |
February 28, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,599,600K ÷ ($—K + $3,385,900K)
= 47.24%
The analysis of Albertsons Companies' return on total capital over the specified period indicates notable fluctuations. As of February 28, 2021, the company's return on total capital was exceptionally high at 118.63%, suggesting strong efficiency in generating profits from its capital base during that period. However, this figure declined significantly to 80.94% by February 28, 2022, reflecting a decrease in capital efficiency, possibly due to operational challenges or changes in asset utilization.
By February 28, 2023, the return increased markedly to 152.39%, surpassing previous levels and indicating a period of enhanced profitability and effective capital deployment. Nonetheless, a subsequent decline occurred, with the ratio dropping to 76.32% by February 29, 2024, signaling a reversal in previous gains and potentially pointing to operational headwinds or shifts in strategic focus. The most recent data point, February 28, 2025, shows a further decrease to 47.24%, which may reflect ongoing challenges impacting the company's ability to generate high returns on its total capital.
Overall, the trend highlights periods of strong performance interspersed with significant declines, suggesting variability in business conditions, operational efficiency, or market factors influencing Albertsons Companies' capacity to capitalize on its invested capital across these years.
Peer comparison
Feb 28, 2025