Academy Sports Outdoors Inc (ASO)
Return on total capital
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 677,855 | 846,549 | 907,947 | 420,398 |
| Long-term debt | US$ in thousands | 484,551 | 584,456 | 683,585 | 781,489 |
| Total stockholders’ equity | US$ in thousands | 1,954,650 | 1,628,310 | 1,466,950 | 1,111,980 |
| Return on total capital | 27.79% | 38.26% | 42.22% | 22.20% |
February 3, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $677,855K ÷ ($484,551K + $1,954,650K)
= 27.79%
Academy Sports Outdoors Inc's return on total capital has experienced fluctuations over the past four years. The trend shows a decrease from 42.22% in January 2022 to 27.79% in February 2024, indicating a decline in the company's efficiency in generating returns on its total capital employed. However, it is important to note that even with this decrease, the company's return on total capital remains relatively high, indicating that Academy Sports Outdoors Inc is still effectively utilizing its invested capital to generate profits. Further analysis may be required to understand the factors influencing these fluctuations and whether they are sustainable in the long term.
Peer comparison
Feb 3, 2024