Fox Factory Holding Corp (FOXF)
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 | 55,954 | 157,983 | 242,703 | 151,803 | 113,824 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,201,180 | 1,221,760 | 1,121,390 | 894,082 | 719,171 |
| Return on total capital | 4.66% | 12.93% | 21.64% | 16.98% | 15.83% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $55,954K ÷ ($—K + $1,201,180K)
= 4.66%
The Return on Total Capital (ROTC) for Fox Factory Holding Corp has shown fluctuations over the years, indicating varying levels of efficiency in generating returns from its total capital employed.
In December 2020, the ROTC stood at 15.83%, showing the company was able to generate a return of approximately 15.83 cents for every dollar of total capital invested. The ROTC improved to 16.98% by December 2021, suggesting enhanced capital efficiency during that period.
By December 2022, the ROTC surged to 21.64%, indicating a significant increase in the efficiency of capital utilization, likely reflecting improved operational performance or strategic initiatives. However, the ROTC dropped to 12.93% by December 2023, signifying a relative decrease in capital efficiency compared to the previous year.
The ROTC further declined substantially to 4.66% by December 2024, reaching its lowest point in the period under consideration. This decrease may indicate challenges in effectively utilizing capital to generate returns or changes in the company's operational or financial landscape.
Overall, the trend in ROTC for Fox Factory Holding Corp highlights the importance of monitoring capital efficiency closely, as variations in this ratio can provide insights into the company's ability to generate returns from its total capital base.
Peer comparison
Dec 31, 2024