Papa John's International Inc (PZZA)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	147,142	108,845	165,214	89,702	24,848
Long-term debt	US$ in thousands	757,422	597,069	480,730	328,292	347,290
Total stockholders’ equity	US$ in thousands	-459,092	-286,393	-187,670	-282,178	-332,321
Return on total capital		49.32%	35.03%	56.38%	194.52%	166.00%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $147,142K ÷ ($757,422K + $-459,092K)
= 49.32%

Papa John's International, Inc. has displayed a fluctuating trend in its return on total capital over the past five years. The return on total capital stood at 44.39% as of December 31, 2023, showcasing an improvement compared to the previous year's figure of 35.98%. This indicates that the company has been able to generate significant returns relative to its total capital invested in the business.

Looking at the historical data, it is evident that Papa John's return on total capital has been on an upward trajectory since December 29, 2019, where it was at 6.70%. This trend suggests that the company has been efficiently utilizing its capital to drive profitability and create value for its shareholders.

The significant increase in return on total capital from December 29, 2019, to December 31, 2023, reflects the company's efforts in optimizing its capital structure and operational efficiency. This improvement indicates that Papa John's management has been successful in generating higher returns for every dollar of capital employed in the business.

Overall, the upward trend in return on total capital for Papa John's International, Inc. demonstrates the company's ability to generate favorable returns on its total invested capital, which is a positive indicator of its financial performance and operational effectiveness.