Leslies Inc (LESL)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 57,117 | 102,179 | 238,357 | 197,539 |
| Long-term debt | US$ in thousands | 769,065 | 773,276 | 779,726 | 786,125 |
| Total stockholders’ equity | US$ in thousands | -177,149 | -161,362 | -197,951 | -217,558 |
| Return on total capital | 9.65% | 16.70% | 40.97% | 34.74% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $57,117K ÷ ($769,065K + $-177,149K)
= 9.65%
The return on total capital for Leslies Inc has shown a decreasing trend over the past four years, starting at 34.74% in 2021 and gradually declining to 9.65% in 2024. This indicates that the company's ability to generate profit from its total capital has weakened over time. A lower return on total capital can be a sign of inefficiency in resource utilization or declining profitability. Further analysis of the company's financial performance and operational strategies is recommended to identify the underlying reasons for this decline and to implement corrective measures.
Peer comparison
Sep 30, 2024