Cracker Barrel Old Country Store (CBRL)

Return on total capital

		Aug 2, 2024	Jul 28, 2023	Jul 29, 2022	Jul 30, 2021	Jul 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	45,119	120,617	153,003	366,659	103,611
Long-term debt	US$ in thousands	476,581	414,904	423,249	327,253	910,000
Total stockholders’ equity	US$ in thousands	440,149	483,825	511,479	663,633	418,389
Return on total capital		4.92%	13.42%	16.37%	37.00%	7.80%

August 2, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $45,119K ÷ ($476,581K + $440,149K)
= 4.92%

The return on total capital for Cracker Barrel Old Country Store has fluctuated over the past five years, ranging from a low of 4.92% in August 2024 to a high of 37.00% in July 2021. The significant increase in return on total capital from 2020 to 2021 indicates a strong performance in generating profits relative to the total capital invested. However, there was a notable decline in returns in 2022 and 2023, with the return on total capital dropping to 16.37% and 13.42%, respectively. The latest data point of 4.92% in August 2024 suggests a decrease in the company's efficiency in utilizing its total capital to generate returns. Further analysis of the company's financial performance and strategic initiatives may be needed to understand the factors contributing to the fluctuations in return on total capital.