Vail Resorts Inc (MTN)
Return on total capital
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 491,060 | 509,584 | 584,930 | 279,975 | 212,932 |
| Long-term debt | US$ in thousands | 2,721,600 | 2,750,680 | 2,670,300 | 2,736,180 | 2,387,120 |
| Total stockholders’ equity | US$ in thousands | 723,537 | 1,003,950 | 1,612,440 | 1,594,600 | 1,316,740 |
| Return on total capital | 14.25% | 13.57% | 13.66% | 6.46% | 5.75% |
July 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $491,060K ÷ ($2,721,600K + $723,537K)
= 14.25%
Vail Resorts Inc's return on total capital has shown a positive trend over the last five years. The ratio has consistently increased from 5.75% in 2020 to 14.25% in 2024, indicating an improving efficiency in generating profit relative to the total capital employed. This upward trend suggests that the company has been effectively utilizing its capital to generate returns for its investors. The consistent improvement in return on total capital reflects positively on Vail Resorts Inc's financial performance and management's ability to create value for shareholders.
Peer comparison
Jul 31, 2024