Grocery Outlet Holding Corp (GO)

Return on total capital

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 51,602 58,065 83,151 93,527 125,782 130,820 117,950 108,380 94,990 86,457 87,913 84,676 89,095 101,492 105,664 114,349 107,375 97,113 90,746 64,684
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 1,197,380 1,226,050 1,220,840 1,224,570 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
Return on total capital 4.31% 4.74% 6.81% 7.64% 10.32% 10.87% 10.13% 9.61% 8.56% 7.97% 8.32% 8.27% 8.83% 10.21% 10.85% 12.06% 11.64% 10.93% 10.89% 8.24%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $51,602K ÷ ($—K + $1,197,380K)
= 4.31%

Over the period from March 31, 2020, to December 31, 2024, Grocery Outlet Holding Corp's return on total capital fluctuated.

The company's return on total capital ranged from a low of 4.31% in December 2024 to a high of 12.06% in March 31, 2021.

Overall, the return on total capital showed an increasing trend in the beginning, reaching its peak in the first quarter of 2021. However, after that, there was a gradual decline in the metric, with fluctuations seen in subsequent periods.

The company's ability to generate returns on all the capital invested indicates its efficiency in utilizing its resources to generate profits. The management may need to further analyze the factors contributing to the decline in return on total capital towards the end of the period to make strategic decisions aimed at improvement.


Peer comparison

Dec 31, 2024

Company name
Symbol
Return on total capital
Grocery Outlet Holding Corp
GO
4.31%
Kroger Company
KR
48.69%
Sprouts Farmers Market LLC
SFM
38.76%