Grocery Outlet Holding Corp (GO)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 125,782 | 130,820 | 117,950 | 108,380 | 94,990 | 86,457 | 87,913 | 84,676 | 89,095 | 101,492 | 105,664 | 114,349 | 107,375 | 96,551 | 90,184 | |||
| Long-term debt | US$ in thousands | 287,107 | — | — | — | 379,650 | — | — | — | — | — | — | — | — | — | — | — | — | 478,454 |
| Total stockholders’ equity | US$ in thousands | 1,219,340 | 1,203,090 | 1,164,810 | 1,127,540 | 1,110,210 | 1,085,310 | 1,056,690 | 1,024,070 | 1,009,270 | 994,031 | 973,883 | 948,086 | 922,307 | 888,826 | 833,401 | 784,628 | 745,384 | 730,878 |
| Return on total capital | 8.35% | 10.87% | 10.13% | 9.61% | 6.38% | 7.97% | 8.32% | 8.27% | 8.83% | 10.21% | 10.85% | 12.06% | 11.64% | 10.86% | 10.82% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $125,782K ÷ ($287,107K + $1,219,340K)
= 8.35%
The return on total capital for Grocery Outlet Holding Corp has exhibited fluctuation over the periods presented. From December 2019 to December 2023, the return on total capital ranged from 6.38% to 12.06%. It peaked in June 2021 at 12.06% and hit its lowest point in December 2022 at 6.38%. Overall, the return on total capital has shown a generally positive trend, with some minor fluctuations. It is important for the company to consistently monitor and optimize its capital allocation strategies to maintain or improve its return on total capital in the future.
Peer comparison
Dec 31, 2023