The Chefs Warehouse Inc (CHEF)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 23, 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 128,207 | 119,907 | 113,574 | 105,047 | 100,943 | 92,553 | 89,079 | 91,373 | 85,738 | 71,814 | 60,178 | 37,203 | 10,811 | -53,298 | -75,662 | -105,730 | -102,660 | -35,995 | -13,446 | 27,493 |
| Long-term debt | US$ in thousands | 688,744 | 666,558 | 660,759 | 667,290 | 664,802 | 689,207 | 709,073 | 654,417 | 653,504 | 493,148 | 392,980 | 393,565 | 394,160 | 394,979 | 395,543 | 396,489 | 398,084 | 396,636 | 397,818 | 495,860 |
| Total stockholders’ equity | US$ in thousands | 537,646 | 480,345 | 461,879 | 447,793 | 454,672 | 434,782 | 422,975 | 405,952 | 401,509 | 384,949 | 373,687 | 354,425 | 350,211 | 339,066 | 333,049 | 328,016 | 344,590 | 378,008 | 387,317 | 319,617 |
| Return on total capital | 10.45% | 10.45% | 10.12% | 9.42% | 9.02% | 8.23% | 7.87% | 8.62% | 8.13% | 8.18% | 7.85% | 4.97% | 1.45% | -7.26% | -10.38% | -14.59% | -13.82% | -4.65% | -1.71% | 3.37% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 mix of positive and negative trends over the analyzed periods. The company's return on total capital was negative from June 2020 to March 2023, indicating that the company was not effectively utilizing its total capital to generate returns during these periods.
However, starting from March 2023, The Chefs Warehouse Inc began to show an improvement in its return on total capital, with a steady increase in the ratio through December 2024. This positive trend indicates that the company's efficiency in generating returns from its total capital has improved over these more recent periods.
Overall, the company's return on total capital has shown a recovery and improvement in performance, culminating in a consistent and relatively strong return on total capital of around 10.45% as of December 31, 2024. This suggests that The Chefs Warehouse Inc has been able to enhance its operational efficiency and profitability in utilizing its total capital effectively.
Peer comparison
Dec 31, 2024