The Chefs Warehouse Inc (CHEF)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 100,943 | 85,738 | 10,811 | -102,660 | 50,667 |
| Long-term debt | US$ in thousands | 664,802 | 653,504 | 394,160 | 398,084 | 386,106 |
| Total stockholders’ equity | US$ in thousands | 454,672 | 401,509 | 350,211 | 344,590 | 335,933 |
| Return on total capital | 9.02% | 8.13% | 1.45% | -13.82% | 7.02% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $100,943K ÷ ($664,802K + $454,672K)
= 9.02%
The return on total capital for The Chefs Warehouse Inc has varied over the past five years, with values ranging from -13.82% in 2020 to a high of 9.02% in 2023. The return on total capital measures the profitability of the company's investments in relation to the total capital employed, including both debt and equity.
The company experienced a significant improvement in its return on total capital from 2020 to 2021, as the ratio increased from -13.82% to 1.45%. This indicates that the company was able to generate a positive return on its invested capital in 2021, although the ratio remained relatively low.
In 2022, The Chefs Warehouse Inc saw a further improvement in its return on total capital, reaching 8.13%. This suggests that the company's profitability relative to its total capital increased significantly compared to the previous year.
In 2023, the return on total capital for the company continued to strengthen, reaching 9.02%. This indicates that The Chefs Warehouse Inc was able to generate a higher return on its total capital investment in 2023, which may be a positive sign for investors and stakeholders.
Overall, the trend in the return on total capital for The Chefs Warehouse Inc shows fluctuations over the years, with the company demonstrating improvements in profitability relative to its total capital in the more recent years. Investors would be interested in monitoring this ratio to assess the company's efficiency in generating returns on its capital investments.
Peer comparison
Dec 31, 2023