Leslies Inc (LESL)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 57,117 | 69,241 | 87,353 | 92,694 | 102,179 | 146,719 | 203,193 | 224,230 | 238,357 | 221,929 | 215,221 | 217,735 | 197,538 | |||
| Long-term debt | US$ in thousands | 769,065 | 768,598 | 770,157 | 771,718 | 773,276 | 774,884 | 776,542 | 778,133 | 779,726 | 781,322 | 782,921 | 784,527 | 786,125 | 787,731 | 789,339 | 795,394 |
| Total stockholders’ equity | US$ in thousands | -177,149 | -168,157 | -230,972 | -198,648 | -161,362 | -179,810 | -254,965 | -225,635 | -197,951 | -258,769 | -385,731 | -381,304 | -217,558 | -265,726 | -391,010 | -386,410 |
| Return on total capital | 9.65% | 11.53% | 16.20% | 16.17% | 16.70% | 24.66% | 38.96% | 40.58% | 40.97% | 42.47% | 54.19% | 54.00% | 34.74% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $57,117K ÷ ($769,065K + $-177,149K)
= 9.65%
Leslies Inc's return on total capital has shown fluctuations over the past 15 quarters, ranging from a low of 9.65% in Sep 30, 2024, to a high of 54.19% in Mar 31, 2022. The trend indicates that the company's ability to generate returns relative to its total capital employed has varied significantly during this period.
The return on total capital was particularly strong in the quarters ending Mar 31, 2022, and Dec 31, 2022, exceeding 40%. This indicates that during these periods, Leslies Inc was effectively utilizing its capital to generate profits.
However, there were also instances of lower returns, such as in the most recent quarter (Sep 30, 2024) when the return on total capital dropped to 9.65%. This suggests that the company may have faced challenges in generating satisfactory returns relative to its capital investment during this period.
Overall, the fluctuating nature of Leslies Inc's return on total capital highlights the importance of closely monitoring and managing the efficiency of capital utilization to ensure sustained profitability and value creation for the company and its stakeholders.
Peer comparison
Sep 30, 2024