BJs Wholesale Club Holdings Inc (BJ)
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 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 785,818 | 764,606 | 743,297 | 735,057 | 705,657 | 669,993 | 651,944 | 608,862 | 574,855 | 562,418 | 592,756 | 607,404 | 642,392 | 579,544 | 490,121 | 425,267 | 352,199 | 380,237 | 369,632 | 309,565 |
| Long-term debt | US$ in thousands | 398,432 | 398,355 | 448,135 | 448,004 | 447,880 | 600,123 | 699,406 | 748,987 | 748,568 | 748,149 | 747,730 | 747,311 | 846,175 | 845,696 | 1,202,210 | 1,334,800 | 1,337,310 | 1,339,700 | 1,540,600 | 1,543,540 |
| Total stockholders’ equity | US$ in thousands | 1,458,850 | 1,353,700 | 1,231,290 | 1,131,730 | 1,046,840 | 942,875 | 853,591 | 721,342 | 648,108 | 567,736 | 488,352 | 413,524 | 319,327 | 217,378 | 119,101 | 32,497 | -54,344 | -104,486 | -164,586 | -148,309 |
| Return on total capital | 42.31% | 43.64% | 44.26% | 46.53% | 47.21% | 43.42% | 41.98% | 41.41% | 41.16% | 42.74% | 47.95% | 52.32% | 55.12% | 54.52% | 37.09% | 31.10% | 27.45% | 30.78% | 26.86% | 22.19% |
February 3, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $785,818K ÷ ($398,432K + $1,458,850K)
= 42.31%
Return on total capital is a key financial ratio that indicates the efficiency and profitability of a company in generating returns from all of its invested capital, including both debt and equity. Looking at the return on total capital trend of BJs Wholesale Club Holdings Inc over the past 20 financial reporting periods, we observe a fluctuating pattern.
The ratio ranged from a low of 22.19% in May 2019 to a high of 55.12% in January 2021, indicating significant variability in the company's ability to generate returns on its total capital over time.
In recent quarters, we can see that the return on total capital has generally been on an upward trajectory, with notable peaks in the most recent quarters. This trend suggests potential improvements in profitability and operational efficiency within the company.
Overall, the return on total capital ratios for BJs Wholesale Club Holdings Inc reflect a mixed performance, with periods of both strong and weaker returns. Further analysis of the company's financial and operational strategies would be needed to understand the factors driving these fluctuations and to assess the sustainability of the improving trend in recent quarters.
Peer comparison
Feb 3, 2024