Ollie's Bargain Outlet Hldg (OLLI)

Return on total capital

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	227,799	197,841	188,304	152,312	130,918	120,674	121,355	150,516	204,592	231,849	259,421	305,741	277,500	257,378	235,326	174,051	171,855	169,185	162,741	166,853
Long-term debt	US$ in thousands	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Total stockholders’ equity	US$ in thousands	1,508,230	1,440,370	1,414,980	1,383,960	1,362,070	1,318,120	1,312,190	1,302,440	1,287,710	1,260,480	1,399,110	1,386,640	1,334,880	1,267,480	1,218,050	1,094,180	1,058,880	1,006,940	1,017,470	988,376
Return on total capital		15.10%	13.74%	13.31%	11.01%	9.61%	9.16%	9.25%	11.56%	15.89%	18.39%	18.54%	22.05%	20.79%	20.31%	19.32%	15.91%	16.23%	16.80%	15.99%	16.88%

February 3, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $227,799K ÷ ($0K + $1,508,230K)
= 15.10%

The return on total capital for Ollie's Bargain Outlet Holdings has shown some variability over the past few quarters, ranging from a low of 9.16% in January 2023 to a high of 22.05% in July 2022. Overall, the trend appears to be positive, with the return on total capital generally increasing from 9.16% in January 2023 to 15.10% in February 2024.

The return on total capital is a measure of how effectively a company is using both its equity and debt to generate profits. A higher return on total capital indicates that the company is generating more profit per dollar of invested capital.

It is important for investors and stakeholders to monitor the return on total capital as it provides insights into the efficiency and profitability of the company's capital structure. The increasing trend in Ollie's return on total capital suggests that the company is becoming more efficient in generating profits with its capital base.

However, it is also essential to continue monitoring this ratio to ensure that the company maintains or improves its profitability over time.