Fox Factory Holding Corp (FOXF)
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 | 160,409 | 205,862 | 230,422 | 245,833 | 243,630 | 230,495 | 223,355 | 208,336 | 200,770 | 194,489 | 180,534 | 146,598 | 112,718 | 101,045 | 90,045 | 99,789 | 110,305 | 107,108 | 103,248 | 98,712 |
| Long-term debt | US$ in thousands | 373,528 | — | — | — | 0 | 0 | 0 | 356,288 | 360,953 | 365,615 | 370,275 | 374,933 | 377,088 | 379,242 | 381,393 | 385,404 | 0 | 0 | 0 | 51,123 |
| Total stockholders’ equity | US$ in thousands | 1,221,760 | 1,241,300 | 1,205,800 | 1,164,250 | 1,121,390 | 1,055,130 | 1,001,930 | 949,084 | 894,082 | 850,040 | 804,369 | 762,291 | 719,171 | 683,927 | 633,064 | 429,706 | 422,200 | 396,620 | 369,180 | 339,421 |
| Return on total capital | 10.06% | 16.58% | 19.11% | 21.12% | 21.73% | 21.85% | 22.29% | 15.96% | 16.00% | 16.00% | 15.37% | 12.89% | 10.28% | 9.50% | 8.88% | 12.24% | 26.13% | 27.01% | 27.97% | 25.28% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $160,409K ÷ ($373,528K + $1,221,760K)
= 10.06%
The return on total capital for Fox Factory Holding Corp has shown some fluctuations over the periods analyzed. The ratio ranged from a low of 8.88% in June 2020 to a high of 27.97% in June 2019. It generally trended upwards from 2019 to 2022, peaking in the first half of 2022 before showing a slight decline in the latter half of 2022 and into 2023.
The company's return on total capital indicates the efficiency with which it is utilizing its total capital to generate profits. A higher return on total capital suggests better profitability and effective use of resources. It is important for investors and analysts to monitor this ratio over time to assess the company's financial performance and allocation of capital.
Peer comparison
Dec 31, 2023