National Vision Holdings Inc (EYE)
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 | -46,826 | 61,275 | 174,937 | 87,007 | 73,575 |
| Long-term debt | US$ in thousands | 437,684 | 546,231 | 543,566 | 624,611 | 525,896 |
| Total stockholders’ equity | US$ in thousands | 829,418 | 901,113 | 925,980 | 906,502 | 776,437 |
| Return on total capital | -3.70% | 4.23% | 11.90% | 5.68% | 5.65% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-46,826K ÷ ($437,684K + $829,418K)
= -3.70%
The return on total capital for National Vision Holdings Inc has fluctuated over the past five years. In 2023, the company experienced a negative return on total capital of -3.70%, indicating that the company did not generate sufficient returns to cover the total capital invested. This could raise concerns about the company's ability to efficiently utilize its capital.
In 2022, the return on total capital improved to 4.23%, but it was still relatively low compared to previous years. However, in 2021, the return on total capital increased significantly to 11.90%, which was a positive sign of the company's ability to generate returns on its total capital.
In 2020 and 2019, the return on total capital was more consistent at 5.68% and 5.65% respectively. These figures indicate that the company was able to generate consistent returns on its total capital during those years.
Overall, National Vision Holdings Inc's return on total capital has been variable, with fluctuations ranging from negative to double-digit percentages. Investors and analysts may want to further investigate the factors influencing these fluctuations to assess the company's financial performance and capital utilization efficiency.
Peer comparison
Dec 31, 2023