BJs Wholesale Club Holdings Inc (BJ)

Return on total capital

Jan 31, 2025 Feb 3, 2024 Jan 31, 2024 Jan 31, 2023 Jan 28, 2023
Earnings before interest and tax (EBIT) US$ in thousands 770,396 800,419 799,258 750,310 737,986
Long-term debt US$ in thousands 398,432 447,880
Total stockholders’ equity US$ in thousands 1,847,450 1,458,850 1,458,850 1,046,840 1,046,840
Return on total capital 41.70% 43.10% 54.79% 71.67% 49.37%

January 31, 2025 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $770,396K ÷ ($—K + $1,847,450K)
= 41.70%

Based on the provided data, BJs Wholesale Club Holdings Inc's return on total capital has shown some fluctuations over the years. The return on total capital was 49.37% as of January 28, 2023, and significantly increased to 71.67% by January 31, 2023.

However, there was a slight decrease in the return on total capital to 54.79% by January 31, 2024. This decline continued, with a further decrease to 43.10% by February 3, 2024, indicating a downward trend in profitability.

As of January 31, 2025, BJs Wholesale Club Holdings Inc's return on total capital stood at 41.70%, showing a continued decline in the company's profitability relative to its total capital.

Overall, the return on total capital ratios suggest that BJs Wholesale Club Holdings Inc's profitability has experienced fluctuations and a general downward trend over the years, indicating potential challenges in generating returns from the company's total capital.