BJs Wholesale Club Holdings Inc (BJ)
Return on total capital
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 800,419 | 737,986 | 617,323 | 642,392 | 352,199 |
| Long-term debt | US$ in thousands | 398,432 | 447,880 | 748,568 | 846,175 | 1,337,310 |
| Total stockholders’ equity | US$ in thousands | 1,458,850 | 1,046,840 | 648,108 | 319,327 | -54,344 |
| Return on total capital | 43.10% | 49.37% | 44.20% | 55.12% | 27.45% |
February 3, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $800,419K ÷ ($398,432K + $1,458,850K)
= 43.10%
BJs Wholesale Club Holdings Inc has shown a fluctuating trend in its return on total capital over the past five years. The return on total capital was 43.10% as of February 3, 2024, indicating that the company generated $0.43 in profit for every $1 of total capital invested. This figure has decreased compared to the previous year's figure of 49.37% on January 28, 2023. However, the return on total capital for 2024 remains relatively high compared to the figures from 2022, 2021, and 2020, which were 44.20%, 55.12%, and 27.45%, respectively.
The downward trend in the return on total capital from 2023 to 2024 may raise concerns about the company's ability to efficiently generate profits from its total capital base. Further analysis of the company's financial performance and capital utilization may be necessary to understand the factors contributing to this decrease and to assess the sustainability of BJs Wholesale Club Holdings Inc's profitability in the future.
Peer comparison
Feb 3, 2024