Grocery Outlet Holding Corp (GO)
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 | 84,140 | 126,989 | 94,990 | 89,095 | 107,375 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,197,380 | 1,219,340 | 1,110,210 | 1,009,270 | 922,307 |
| Return on total capital | 7.03% | 10.41% | 8.56% | 8.83% | 11.64% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $84,140K ÷ ($—K + $1,197,380K)
= 7.03%
Over the past five years, Grocery Outlet Holding Corp's return on total capital has shown some fluctuations. As of December 31, 2020, the return on total capital was at a healthy 11.64%, indicating the company was effectively generating returns from its invested capital. However, this metric experienced a decline to 8.83% by December 31, 2021, and further decreased to 8.56% by December 31, 2022, suggesting a potential inefficiency in capital utilization during those periods.
There was a notable improvement in the return on total capital in the subsequent year, reaching 10.41% by December 31, 2023, which may indicate better capital allocation strategies or operational performance. However, by December 31, 2024, the return on total capital dropped significantly to 7.03%, the lowest in the provided dataset, signaling a potential challenge in generating returns relative to the total capital employed.
Overall, the trend in Grocery Outlet Holding Corp's return on total capital demonstrates some variability over the analyzed period, with a mix of positive and negative movements. Further evaluation of the company's operational efficiency, profitability, and investments may be needed to determine the factors contributing to these fluctuations and to identify areas for improvement.
Peer comparison
Dec 31, 2024