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.