Fox Factory Holding Corp (FOXF)
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 | 157,983 | 242,703 | 196,543 | 112,752 | 110,305 |
| Long-term debt | US$ in thousands | 373,528 | 0 | 360,953 | 377,088 | 0 |
| Total stockholders’ equity | US$ in thousands | 1,221,760 | 1,121,390 | 894,082 | 719,171 | 422,200 |
| Return on total capital | 9.90% | 21.64% | 15.66% | 10.29% | 26.13% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $157,983K ÷ ($373,528K + $1,221,760K)
= 9.90%
Fox Factory Holding Corp's return on total capital has shown fluctuations over the past five years. In 2023, the return on total capital was 9.90%, a decrease from the previous year's 21.64%. This decline indicates a lower efficiency in generating returns relative to the total capital employed in the business.
Comparing the returns over a five-year period, we observe that the return on total capital was relatively stable in 2019 and 2021, at 26.13% and 15.66% respectively. However, there was a slight decline in 2020 to 10.29%. The significant drop in 2023 to 9.90% suggests a potential issue that may warrant further investigation regarding the utilization of capital within the company.
Overall, the trend in return on total capital indicates that Fox Factory Holding Corp has experienced varying levels of efficiency in capital utilization over the years. It is essential for the company to analyze the factors contributing to these fluctuations to improve its overall financial performance and generate higher returns on the capital employed.
Peer comparison
Dec 31, 2023