Science Applications International Corporation Common Stock (SAIC)
Return on total capital
| 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 | Jan 31, 2020 | Nov 1, 2019 | Aug 2, 2019 | May 3, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 374,000 | 292,000 | 272,000 | 250,000 |
| Long-term debt | US$ in thousands | 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 | 1,851,000 | 1,872,000 | 1,887,000 | 1,902,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,417,000 | 1,380,000 | 1,339,000 | 1,462,000 |
| Return on total capital | 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% | 11.44% | 8.98% | 8.43% | 7.43% |
February 2, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $748,000K ÷ ($2,022,000K + $1,785,000K)
= 19.65%
The return on total capital for Science Applications International Corporation Common Stock has shown a positive trend overall, fluctuating between 7.43% and 19.65% over the past 20 periods. The return on total capital peaked at 19.65% on Feb 2, 2024, indicating that the company generated $0.1965 in profit for every $1 of total capital employed. This signifies strong profitability and efficiency in utilizing the total capital to generate returns for shareholders.
The average return on total capital over the period is approximately 11.27%, demonstrating a consistent ability to generate returns above the company's cost of capital. Investors typically consider a return on total capital above the cost of capital as a positive indicator of value creation.
It is important to note the fluctuations in the return on total capital over the period, with some variance observed between different reporting dates. These fluctuations may be influenced by various factors such as changes in the company's operating performance, capital structure, and market conditions.
Overall, the return on total capital analysis suggests that Science Applications International Corporation has been effectively utilizing its total capital to generate favorable returns for its investors, demonstrating a solid financial performance.
Peer comparison
Feb 2, 2024