Dick’s Sporting Goods Inc (DKS)
Return on total capital
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,282,360 | 1,463,020 | 2,034,500 | 741,477 | 375,613 |
| Long-term debt | US$ in thousands | 0 | 58,271 | 449,287 | 418,500 | 224,100 |
| Total stockholders’ equity | US$ in thousands | 2,617,280 | 2,524,620 | 2,101,590 | 2,339,530 | 1,731,600 |
| Return on total capital | 49.00% | 56.64% | 79.76% | 26.88% | 19.21% |
February 3, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,282,360K ÷ ($0K + $2,617,280K)
= 49.00%
Return on total capital is a key financial ratio used to assess a company's efficiency in generating profits from the total capital employed. Dick’s Sporting Goods Inc has shown a fluctuating trend in return on total capital over the past five years. In the most recent fiscal year ending on February 3, 2024, the return on total capital was 49.00%, indicating that the company generated a profit of $0.49 for every $1 of total capital invested.
Comparing this to the previous year, where the return on total capital was 56.64%, we observe a slight decrease in profitability efficiency. However, the return on total capital was significantly lower in the fiscal years 2020 (19.21%) and 2021 (26.88%), before experiencing a notable increase in 2022 (79.76%).
This fluctuation in return on total capital may indicate changes in the company's operating performance, asset utilization, or capital structure over the years. Further analysis is needed to understand the factors contributing to these fluctuations and to assess the overall sustainability and profitability of Dick’s Sporting Goods Inc.
Peer comparison
Feb 3, 2024