Patterson Companies Inc (PDCO)
Return on total capital
| Apr 27, 2024 | Apr 29, 2023 | Apr 30, 2022 | Apr 24, 2021 | Apr 25, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 288,375 | 304,756 | 288,038 | 225,087 | -547,699 |
| Long-term debt | US$ in thousands | 328,911 | 451,231 | 488,554 | 487,545 | 587,766 |
| Total stockholders’ equity | US$ in thousands | 1,001,140 | 1,117,540 | 1,041,680 | 963,216 | 834,117 |
| Return on total capital | 21.68% | 19.43% | 18.82% | 15.52% | -38.52% |
April 27, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $288,375K ÷ ($328,911K + $1,001,140K)
= 21.68%
Patterson Companies Inc's return on total capital has been gradually improving over the past five years, reflecting the company's ability to generate profits from the capital invested in its operations. The return on total capital increased from 15.52% in 2021 to 21.68% in 2024, indicating a positive trend in the company's efficiency in utilizing its total capital to generate earnings. However, it is noteworthy that in 2020, the company experienced a significant decline in its return on total capital, with a negative figure of -38.52%, which suggests a period of financial challenges. Overall, the improving trend in the return on total capital demonstrates Patterson Companies Inc's efforts to enhance its operational performance and profitability over the years.
Peer comparison
Apr 27, 2024