Leslies Inc (LESL)
Return on total capital
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 102,179 | 238,357 | 197,539 |
| Long-term debt | US$ in thousands | 773,276 | 779,726 | 786,125 |
| Total stockholders’ equity | US$ in thousands | -161,362 | -197,951 | -217,558 |
| Return on total capital | 16.70% | 40.97% | 34.74% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $102,179K ÷ ($773,276K + $-161,362K)
= 16.70%
Leslies Inc's return on total capital has shown some fluctuations over the past three years. In September 2023, the return on total capital was 16.70%, significantly lower than the 40.97% reported in 2022 and 34.74% in 2021.
This decrease in return on total capital from 2022 to 2023 may indicate that the company's ability to generate profits from its total capital has declined or that the total capital employed has increased without a proportionate increase in profits.
It is essential for Leslies Inc to thoroughly analyze the factors contributing to this decline in return on total capital and take appropriate measures to improve efficiency, profitability, and overall performance to enhance shareholder value in the future.
Peer comparison
Sep 30, 2023