Floor & Decor Holdings Inc (FND)

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	321,428	396,760	338,992	215,594	159,181
Long-term debt	US$ in thousands	194,939	405,551	195,762	207,157	142,606
Total stockholders’ equity	US$ in thousands	1,930,990	1,657,180	1,323,200	997,388	764,336
Return on total capital		15.12%	19.23%	22.32%	17.90%	17.55%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $321,428K ÷ ($194,939K + $1,930,990K)
= 15.12%

Floor & Decor Holdings Inc's return on total capital has demonstrated some fluctuations over the past five years. The figures show a decreasing trend from 22.32% in 2021 to 15.12% in 2023. Although the return on total capital has declined, it remains relatively healthy, indicating the company's ability to generate profit from its invested capital. It is essential to further assess the reasons behind the changes in return on total capital to evaluate the company's efficiency in utilizing its capital effectively for generating returns.

Peer comparison

Dec 31, 2023

Company name

Symbol

Return on total capital

Floor & Decor Holdings Inc

FND

15.12%

Builders FirstSource Inc