Floor & Decor Holdings Inc (FND)
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 | — | 321,428 | 396,760 | 338,992 | 214,579 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,170,160 | 1,930,990 | 1,657,180 | 1,323,200 | 997,388 |
| Return on total capital | 0.00% | 16.65% | 23.94% | 25.62% | 21.51% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,170,160K)
= 0.00%
Floor & Decor Holdings Inc has shown fluctuations in its return on total capital over the analyzed period. The company's return on total capital was 21.51% as of December 31, 2020, which improved to 25.62% by December 31, 2021. The ratio then decreased to 23.94% by December 31, 2022, followed by a larger decline to 16.65% by December 31, 2023. Notably, the return on total capital dropped to 0.00% as of December 31, 2024, which suggests that the capital employed in the company did not generate any return during that period. This declining trend in the return on total capital may indicate inefficiencies in capital utilization or weakening profitability over time, warranting further investigation and strategic actions for improvement.
Peer comparison
Dec 31, 2024