Dycom Industries Inc (DY)
Return on total capital
| Jan 27, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Jan 25, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 294,983 | 182,957 | 57,266 | 69,455 | 102,671 |
| Long-term debt | US$ in thousands | 791,415 | 807,367 | 823,251 | 501,562 | 844,401 |
| Total stockholders’ equity | US$ in thousands | 1,054,660 | 868,755 | 758,544 | 811,308 | 868,604 |
| Return on total capital | 15.98% | 10.92% | 3.62% | 5.29% | 5.99% |
January 27, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $294,983K ÷ ($791,415K + $1,054,660K)
= 15.98%
Over the past five years, Dycom Industries, Inc. has demonstrated a positive trend in its return on total capital, indicating the company's ability to generate profit relative to the capital invested in the business. The return on total capital has steadily improved from 6.79% in January 2020 to 17.33% in January 2024.
This upward trajectory suggests that Dycom Industries has been effectively utilizing its capital to generate income for its stakeholders. The consistent increase in return on total capital reflects a strengthening financial performance and efficiency in capital management within the company. Investors and analysts may view this improvement positively as it indicates the company's ability to generate higher returns on the capital employed in its operations.
Overall, Dycom Industries' increasing return on total capital over the five-year period signifies a positive financial outlook and efficient utilization of resources within the company.
Peer comparison
Jan 27, 2024