Bellring Brands LLC (BRBR)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	285,100	287,300	270,300	261,800	216,800	161,100	122,300	77,200	76,400	79,600	80,800	78,100	86,600	87,400
Long-term debt	US$ in thousands	832,100	856,800	910,500	970,100	944,800	929,500	914,200	938,800	473,400	481,200	490,700	539,600	635,100	622,600	683,900	756,400	723,800
Total stockholders’ equity	US$ in thousands	-286,900	-323,500	-364,700	-363,100	-370,300	-376,200	-389,600	-428,800	-2,827,800	-3,062,800	-3,155,000	-2,435,200	-2,499,700	-2,182,600	-2,136,700	-1,863,200	-2,278,200
Return on total capital		52.29%	53.87%	49.52%	43.13%	37.74%	29.12%	23.31%	15.14%	—	—	—	—	—	—

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $285,100K ÷ ($832,100K + $-286,900K)
= 52.29%

Based on the data provided from Q1 2022 to Q1 2024, Bellring Brands Inc has shown a consistent improvement in its return on total capital. The return on total capital has steadily increased from 36.94% in Q2 2022 to a peak of 53.87% in Q4 2023, indicating efficient utilization of both equity and debt to generate profits.

The company's return on total capital has surpassed 50% in several quarters, reflecting strong operational performance and effective capital allocation strategies. This high return indicates that Bellring Brands Inc is generating significant profits relative to the total capital invested in the business.

Overall, the increasing trend in return on total capital demonstrates Bellring Brands Inc's ability to create value for its stakeholders and optimize its financial resources effectively. This consistent improvement is a positive sign for the company's financial health and performance in utilizing its capital efficiently.