ODP Corp (ODP)
Return on total capital
| 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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 221,000 | 287,000 | 280,000 | 267,000 | 247,000 | -61,000 | -16,000 | -128,000 | -137,000 | 141,000 | 133,000 | -258,000 | -244,000 | -154,000 | -166,000 | 290,000 | 238,000 | 159,000 | 160,000 | 224,000 |
| Long-term debt | US$ in thousands | — | — | — | — | 1,000 | — | — | — | 3,000 | — | — | — | 6,000 | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,101,000 | 1,155,000 | 1,161,000 | 1,148,000 | 1,287,000 | 1,499,000 | 1,513,000 | 1,492,000 | 1,438,000 | 1,862,000 | 1,841,000 | 1,960,000 | 1,880,000 | 1,795,000 | 1,717,000 | 2,135,000 | 2,173,000 | 2,127,000 | 2,082,000 | 2,106,000 |
| Return on total capital | 20.07% | 24.85% | 24.12% | 23.26% | 19.18% | -4.07% | -1.06% | -8.58% | -9.51% | 7.57% | 7.22% | -13.16% | -12.94% | -8.58% | -9.67% | 13.58% | 10.95% | 7.48% | 7.68% | 10.64% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $221,000K ÷ ($—K + $1,101,000K)
= 20.07%
ODP Corp's return on total capital has shown fluctuating performance over the past few quarters. In the most recent quarter ending December 31, 2023, the return on total capital was 20.07%, indicating a solid return on the company's total capital employed. This was an improvement from the previous quarter where the return was 24.85%.
Looking further back, the return on total capital had been positive and relatively stable for the quarters ending from March 31, 2019, to March 31, 2022, with returns ranging from 7.48% to 24.12%. However, there were negative returns in the quarters ending September 30, 2022, to March 31, 2023, indicating challenges in generating sufficient returns compared to the capital invested during that period.
Overall, the return on total capital for ODP Corp has experienced variability, with periods of strong performance interspersed with quarters of negative returns. Analyzing the factors contributing to these fluctuations in return on total capital would be essential to understanding the company's financial management and strategic decision-making.
Peer comparison
Dec 31, 2023