National Vision Holdings Inc (EYE)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -46,826 | -43,347 | 46,609 | 57,255 | 61,275 | 79,011 | 114,363 | 150,821 | 174,937 | 223,884 | 227,967 | 131,540 | 87,007 | 38,472 | -5,210 | 58,090 | 73,575 | 45,827 | 32,632 | 35,903 |
| Long-term debt | US$ in thousands | 437,684 | 538,034 | 539,225 | 546,862 | 546,231 | 545,520 | 544,822 | 544,178 | 543,566 | 592,526 | 591,832 | 708,196 | 624,611 | 620,065 | 615,641 | — | 525,896 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 829,418 | 840,352 | 908,412 | 896,726 | 901,113 | 906,925 | 891,669 | 950,726 | 925,980 | 988,557 | 938,337 | 887,532 | 906,502 | 864,963 | 820,939 | 786,160 | 776,437 | 765,471 | 774,434 | 762,580 |
| Return on total capital | -3.70% | -3.14% | 3.22% | 3.97% | 4.23% | 5.44% | 7.96% | 10.09% | 11.90% | 14.16% | 14.90% | 8.24% | 5.68% | 2.59% | -0.36% | 7.39% | 5.65% | 5.99% | 4.21% | 4.71% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 shown variability over the past few quarters. In the most recent quarter, the return on total capital was -3.70%, indicating that the company did not generate a positive return on its total capital investments. This suggests that the company's profitability in relation to its total invested capital was negative during this period.
Looking at earlier quarters, the return on total capital has fluctuated, with some quarters showing positive returns ranging from 3.22% to 14.90%. The highest return on total capital was observed in the quarter ending September 30, 2021, at 14.90%. This indicates that during that period, the company generated a return of 14.90% on the total capital invested.
However, there have also been quarters where the return on total capital was negative, such as the quarter ending June 30, 2020, where the return was -0.36%. Negative returns on total capital suggest that the company may not have effectively utilized its capital to generate profits during those periods.
Overall, the trend in the return on total capital suggests that the company's profitability relative to its total capital has been variable. It is important for National Vision Holdings Inc to analyze the drivers behind these fluctuations in order to make informed decisions to improve its efficiency in generating returns on invested capital.
Peer comparison
Dec 31, 2023