Apogee Enterprises Inc (APOG)
Return on total capital
| Mar 2, 2024 | Feb 25, 2023 | Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 137,242 | 125,055 | 18,430 | 28,196 | 88,967 |
| Long-term debt | US$ in thousands | 62,000 | 169,837 | 162,000 | 163,000 | 212,500 |
| Total stockholders’ equity | US$ in thousands | 471,025 | 396,408 | 386,199 | 492,745 | 516,778 |
| Return on total capital | 25.75% | 22.08% | 3.36% | 4.30% | 12.20% |
March 2, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $137,242K ÷ ($62,000K + $471,025K)
= 25.75%
Apogee Enterprises Inc's return on total capital has shown a positive trend over the past five years. The return on total capital increased from 12.20% in fiscal year 2020 to 25.75% in fiscal year 2024, indicating an improvement in the company's efficiency in generating profits from its total capital employed. This steady increase suggests that the company has been effectively utilizing its capital resources to generate returns for its investors. The substantial rise in return on total capital signifies that Apogee Enterprises Inc has been able to enhance its operational performance and profitability over the years. Overall, the company's ability to generate higher returns on its total capital demonstrates its financial strength and efficiency in utilizing its resources to create value for shareholders.