Vail Resorts Inc (MTN)
Return on total capital
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 491,060 | 533,300 | 490,606 | 469,317 | 509,584 | 560,711 | 598,170 | 584,895 | 584,930 | 511,446 | 376,112 | 276,172 | 279,975 | 287,586 | 100,492 | 187,443 | 212,932 | 258,248 | 459,838 | 451,345 |
| Long-term debt | US$ in thousands | 2,721,600 | 2,700,260 | 2,721,600 | 2,732,040 | 2,750,680 | 2,773,750 | 2,789,830 | 2,769,700 | 2,670,300 | 2,687,490 | 2,695,590 | 2,704,580 | 2,736,180 | 2,739,980 | 2,768,020 | 2,387,860 | 2,387,120 | 2,365,370 | — | — |
| Total stockholders’ equity | US$ in thousands | 723,537 | 1,003,510 | 829,904 | 633,031 | 1,003,950 | 1,273,920 | 1,462,580 | 1,264,880 | 1,612,440 | 1,829,320 | 1,565,540 | 1,432,470 | 1,594,600 | 1,782,200 | 1,460,700 | 1,166,120 | 1,316,740 | 1,422,120 | 1,425,480 | 1,302,490 |
| Return on total capital | 14.25% | 14.40% | 13.81% | 13.95% | 13.57% | 13.85% | 14.07% | 14.50% | 13.66% | 11.32% | 8.83% | 6.68% | 6.46% | 6.36% | 2.38% | 5.27% | 5.75% | 6.82% | 32.26% | 34.65% |
July 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 fluctuations over the past several periods. The return on total capital was relatively stable around the 13-14% range from July 2023 to July 2024, indicating the company's ability to generate earnings from its total invested capital. However, there was a significant drop in return on total capital in the first quarter of fiscal year 2022, with a low of 2.38%, which may indicate operational challenges or temporary factors impacting profitability.
The return on total capital then improved in subsequent quarters but remained below the levels seen in the previous fiscal years. The return on total capital in the most recent period, July 2024, was 14.25%, slightly lower than the peak of 14.50% in October 2022.
Overall, the trend in Vail Resorts Inc's return on total capital suggests some variability in the company's ability to effectively utilize its total capital to generate profits. Further analysis of the underlying factors influencing these fluctuations would be needed to assess the company's performance more comprehensively.
Peer comparison
Jul 31, 2024