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.