LCI Industries (LCII)

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	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	123,428	97,770	139,755	303,370	553,028	690,038	691,487	566,680	398,410	347,890	353,299	280,099	222,934	197,126	151,846	196,721	200,210	192,092	188,292	186,723
Long-term debt	US$ in thousands	846,834	908,245	915,756	1,055,620	1,095,890	1,039,870	1,101,790	1,265,380	1,231,960	1,012,080	941,824	726,608	720,418	616,076	681,242	750,519	612,906	261,631	245,310	286,311
Total stockholders’ equity	US$ in thousands	1,355,040	1,372,140	1,370,900	1,359,510	1,381,010	1,423,560	1,394,360	1,259,250	1,092,880	1,031,140	986,176	959,587	908,326	875,562	816,630	807,803	800,672	777,381	752,876	721,679
Return on total capital		5.61%	4.29%	6.11%	12.56%	22.33%	28.01%	27.70%	22.45%	17.14%	17.03%	18.32%	16.61%	13.69%	13.22%	10.14%	12.62%	14.16%	18.49%	18.86%	18.52%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $123,428K ÷ ($846,834K + $1,355,040K)
= 5.61%

LCI Industries' return on total capital has shown a fluctuating trend over the past eight quarters. The return on total capital was highest in Q4 2022 at 27.76% and has been declining since then. In Q1 2023, there was a significant drop in the return on total capital to 12.43%, followed by further decreases in subsequent quarters. The return on total capital in Q4 2023 stands at 5.60%, indicating a continued decrease in the company's efficiency in generating returns from its total capital. Overall, the decreasing trend in return on total capital over the past year may raise concerns about the company's ability to effectively utilize its total capital to generate profits for its stakeholders.