Grocery Outlet Holding Corp (GO)
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 | 125,782 | 94,990 | 89,095 | 107,375 | 68,343 |
| Long-term debt | US$ in thousands | 287,107 | 379,650 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,219,340 | 1,110,210 | 1,009,270 | 922,307 | 745,384 |
| Return on total capital | 8.35% | 6.38% | 8.83% | 11.64% | 9.17% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $125,782K ÷ ($287,107K + $1,219,340K)
= 8.35%
Based on the data provided, Grocery Outlet Holding Corp's return on total capital has shown fluctuations over the past five years. In 2023, the return on total capital was 8.35%, which reflects an increase compared to the previous year's figure of 6.38% in 2022 but a decrease from the 2021 figure of 8.83%. The highest return on total capital was observed in 2020, at 11.64%, followed by 2019 with a return of 9.17%.
The varying trend in return on total capital suggests that the company's efficiency in generating profits relative to its total invested capital has not been consistently improving or declining over the years. It is important for investors and stakeholders to closely monitor this ratio to assess the company's ability to generate returns on the capital employed in its operations.
Peer comparison
Dec 31, 2023