Bellring Brands LLC (BRBR)

Return on total capital

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	287,300	161,100	79,600	87,400
Long-term debt	US$ in thousands	856,800	929,500	481,200	622,600
Total stockholders’ equity	US$ in thousands	-323,500	-376,200	-3,062,800	-2,182,600
Return on total capital		53.87%	29.12%	—	—

September 30, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $287,300K ÷ ($856,800K + $-323,500K)
= 53.87%

Based on the provided data, it is evident that Bellring Brands Inc has experienced a notable increase in its return on total capital over the past five years.

In 2019, the return on total capital stood at 33.41%, demonstrating the company's ability to generate earnings in relation to its total capital employed. This figure rose to 38.39% in 2022, marking a steady upward trend. The most recent data, for September 30, 2023, depicts a substantial leap, with the return on total capital soaring to 53.87%.

Such an increase in return on total capital indicates the company's enhanced efficiency in creating value from its total capital base. It may signify improved operational effectiveness, strategic capital allocation, or a combination of factors contributing to stronger returns on investments and capital utilization.

This upward trajectory in return on total capital reflects positively on Bellring Brands Inc's financial performance, suggesting effective management of its capital resources and highlighting the potential for sustained profitability and shareholder value creation. However, further analysis of the company's financial statements and industry context would be necessary to fully understand the drivers behind this trend and its implications for the company's overall financial health and performance.