Science Applications International Corporation Common Stock (SAIC)

Return on total capital

Jan 31, 2025 Nov 1, 2024 Aug 2, 2024 May 3, 2024 Feb 2, 2024 Nov 3, 2023 Aug 4, 2023 May 5, 2023 Feb 3, 2023 Oct 28, 2022 Jul 29, 2022 Apr 29, 2022 Jan 28, 2022 Oct 29, 2021 Jul 30, 2021 Apr 30, 2021 Jan 29, 2021 Oct 30, 2020 Jul 31, 2020 May 1, 2020
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 556,000 497,000 484,000 721,000 748,000 786,000 771,000 527,000 492,000 457,000 441,000 451,000 461,000 485,000 481,000 447,000 391,000 375,000 359,000 355,000
Long-term debt US$ in thousands 1,907,000 1,939,000 1,970,000 1,993,000 2,022,000 2,194,000 2,215,000 2,329,000 2,343,000 2,358,000 2,462,000 2,342,000 2,370,000 2,433,000 2,461,000 2,390,000 2,447,000 2,446,000 2,657,000 2,801,000
Total stockholders’ equity US$ in thousands 1,577,000 1,612,000 1,625,000 1,759,000 1,785,000 1,828,000 1,843,000 1,692,000 1,694,000 1,686,000 1,643,000 1,640,000 1,619,000 1,635,000 1,618,000 1,577,000 1,542,000 1,499,000 1,437,000 1,395,000
Return on total capital 15.96% 14.00% 13.46% 19.22% 19.65% 19.54% 19.00% 13.11% 12.19% 11.30% 10.74% 11.33% 11.56% 11.92% 11.79% 11.27% 9.80% 9.51% 8.77% 8.46%

January 31, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $556,000K ÷ ($1,907,000K + $1,577,000K)
= 15.96%

The return on total capital for Science Applications International Corporation Common Stock has shown a generally positive trend over the analyzed period from May 1, 2020, to January 31, 2025. The ratio increased from 8.46% on May 1, 2020, to a peak of 19.65% on February 2, 2024, before gradually decreasing to 15.96% on January 31, 2025.

The consistent growth in return on total capital until early 2024 indicates that the company efficiently utilized its capital to generate profits. The peak in February 2024 could signify a period of exceptional performance or strategic initiatives that significantly boosted profitability.

However, the decline in the ratio post-February 2024, with fluctuations in subsequent periods, may suggest challenges or changes affecting the company's ability to maintain the same level of profitability as before. The sharp increase to 19.54% in November 3, 2023, followed by a decline to 13.46% on August 2, 2024, and further movements thereafter, indicates potential volatility or shifts in the company's financial performance.

Overall, while the return on total capital for Science Applications International Corporation Common Stock has experienced fluctuations, the general upward trend until early 2024 indicates positive capital utilization and profitability. Investors and stakeholders may monitor future financial reports to assess whether the recent decline is transient or indicative of longer-term challenges that may impact the company's financial health.