The Chefs Warehouse Inc (CHEF)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 128,207 | 100,943 | 85,738 | 10,811 | -102,660 |
| Long-term debt | US$ in thousands | 688,744 | 664,802 | 653,504 | 394,160 | 398,084 |
| Total stockholders’ equity | US$ in thousands | 537,646 | 454,672 | 401,509 | 350,211 | 344,590 |
| Return on total capital | 10.45% | 9.02% | 8.13% | 1.45% | -13.82% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $128,207K ÷ ($688,744K + $537,646K)
= 10.45%
The Return on Total Capital for The Chefs Warehouse Inc has shown a significant improvement over the years. Starting at a negative figure of -13.82% on December 31, 2020, the company turned around its performance and achieved positive returns of 1.45% by December 31, 2021. This positive trend continued in the following years, with Return on Total Capital reaching 8.13% by December 31, 2022, 9.02% by December 31, 2023, and 10.45% by December 31, 2024.
The consistent increase in Return on Total Capital signifies that the company has been able to generate higher returns relative to the total capital invested in the business. This improvement indicates a more efficient utilization of capital and potentially better profitability for the company. Overall, the upward trajectory in Return on Total Capital reflects positively on The Chefs Warehouse Inc's financial performance and management effectiveness.
Peer comparison
Dec 31, 2024