Papa John's International Inc (PZZA)

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	147,142	140,806	128,399	132,391	109,030	110,965	130,081	135,814	168,241	149,774	135,746	121,643	90,253	70,423	50,801	34,498	24,535	17,341	-1,756	8,923
Long-term debt	US$ in thousands	757,422	769,210	768,820	797,362	597,069	548,753	536,446	528,088	480,730	414,915	403,810	328,538	328,292	328,079	327,932	342,611	347,290	346,064	349,749	346,433
Total stockholders’ equity	US$ in thousands	-459,092	-475,192	-481,041	-491,155	-286,393	-274,266	-249,559	-224,079	-187,670	-152,335	-163,188	-255,382	-282,178	-288,260	-307,572	-342,309	-332,321	-341,729	-333,650	-328,716
Return on total capital		49.32%	47.89%	44.62%	43.24%	35.09%	40.43%	45.34%	44.67%	57.41%	57.04%	56.41%	166.28%	195.72%	176.86%	249.51%	11,423.18%	163.91%	400.02%	-10.91%	50.36%

December 31, 2023 calculation

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

Papa John's International, Inc. has demonstrated a consistent trend of strong return on total capital over the past eight quarters. The return on total capital has ranged from 35.98% to 46.10% during this period, indicating the company's effective utilization of both equity and debt to generate profits. The highest return on total capital was achieved in Q2 2022 at 46.10%, while the lowest was recorded in Q4 2022 at 35.98%.

Overall, the upward trajectory in return on total capital reflects the company's ability to efficiently allocate its resources and generate earnings relative to the total capital employed. This sustained performance indicates a well-managed capital structure and operational efficiency within Papa John's International, Inc.