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