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.