National Vision Holdings Inc (EYE)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -9,500 | -45,132 | 61,275 | 174,937 | 87,007 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 816,333 | 829,418 | 901,113 | 925,980 | 906,502 |
| Return on total capital | -1.16% | -5.44% | 6.80% | 18.89% | 9.60% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-9,500K ÷ ($—K + $816,333K)
= -1.16%
National Vision Holdings Inc's return on total capital has exhibited significant fluctuations over the years.
- In December 31, 2020, the return on total capital was 9.60%, indicating that the company generated a decent return on the total capital employed.
- By December 31, 2021, the return on total capital improved significantly to 18.89%, reflecting a strong performance in utilizing the total capital to generate profits.
- However, the return on total capital dropped to 6.80% by December 31, 2022, suggesting a decrease in profitability in relation to the total capital invested.
- By December 31, 2023, the return on total capital turned negative at -5.44%, signifying that the company's capital utilization led to a loss rather than profit.
- The negative trend continued into December 31, 2024, with a return on total capital of -1.16%, indicating further deterioration in the efficiency of capital utilization.
These fluctuations in the return on total capital reflect the company's changing ability to generate profits in relation to the total capital employed, signaling potential challenges in capital management and operational efficiency. It is important for National Vision Holdings Inc to assess and address the factors contributing to these fluctuations to ensure sustainable and profitable operations in the future.
Peer comparison
Dec 31, 2024