Academy Sports Outdoors Inc (ASO)
Return on total capital
| Feb 3, 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 677,855 | 678,690 | 721,481 | 767,252 | 846,549 | 839,951 | 876,542 | 874,366 | 907,947 | 850,777 | 716,220 | |||
| Long-term debt | US$ in thousands | 484,551 | 583,364 | 583,729 | 584,093 | 584,456 | 682,803 | 683,065 | 683,325 | 683,585 | 683,845 | 684,103 | 781,035 | 781,489 | 1,408,880 |
| Total stockholders’ equity | US$ in thousands | 1,954,650 | 1,793,090 | 1,738,040 | 1,680,960 | 1,628,310 | 1,558,920 | 1,521,270 | 1,528,510 | 1,466,950 | 1,375,990 | 1,447,620 | 1,313,880 | 1,111,980 | 984,564 |
| Return on total capital | 27.79% | 28.56% | 31.07% | 33.87% | 38.26% | 37.47% | 39.76% | 39.53% | 42.22% | 41.30% | 33.60% |
February 3, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 shown a positive trend over the past few quarters, indicating efficient utilization of both equity and debt capital to generate profits. The company's return on total capital ranged from 27.79% to 42.22% during the period from October 2020 to February 2024.
The steady increase in return on total capital from 27.79% in February 2023 to 42.22% in January 2022 demonstrates the company's improving ability to generate earnings relative to the total capital employed. This indicates effective management of the company's assets and liabilities to generate higher returns for its investors.
While the return on total capital dipped slightly in subsequent quarters, it remained above 30%, reflecting Academy Sports Outdoors Inc's solid financial performance and ability to generate profits from its invested capital. Overall, the upward trend in return on total capital signals the company's efficiency and profitability in utilizing its capital resources.
Peer comparison
Feb 3, 2024