Boot Barn Holdings Inc (BOOT)
Return on total capital
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 198,214 | 231,787 | 258,338 | 86,326 | 73,668 |
| Long-term debt | US$ in thousands | — | — | — | 109,781 | 109,022 |
| Total stockholders’ equity | US$ in thousands | 943,643 | 776,450 | 599,676 | 394,891 | 321,693 |
| Return on total capital | 21.01% | 29.85% | 43.08% | 17.11% | 17.10% |
March 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $198,214K ÷ ($—K + $943,643K)
= 21.01%
Boot Barn Holdings Inc's return on total capital has shown varying performance over the past five years.
In March 2024, the return on total capital stood at 21.01%, indicating that for every dollar of total capital employed in the business, the company generated a return of 21.01 cents. This figure represents a decline from the previous year's level of 29.85%, suggesting a decrease in the efficiency of capital utilization.
Looking back over the five-year period, the trend in return on total capital has been fluctuating. The highest return was recorded in March 2022 at 43.08%, indicating a strong performance in efficiently utilizing total capital to generate profits. However, in March 2021 and 2020, the returns were more modest at 17.11% and 17.10% respectively.
Overall, while the return on total capital has shown some volatility, it is important for Boot Barn Holdings Inc to consistently monitor and improve this metric to ensure optimal utilization of capital resources and sustainable profitability in the long term.
Peer comparison
Mar 31, 2024