Sally Beauty Holdings Inc (SBH)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 282,733 | 325,029 | 337,640 | 418,443 | 330,115 |
| Long-term debt | US$ in thousands | 1,008,510 | 1,060,960 | 1,037,490 | 1,431,090 | 1,837,100 |
| Total stockholders’ equity | US$ in thousands | 628,535 | 508,748 | 293,636 | 280,741 | 15,443 |
| Return on total capital | 17.27% | 20.71% | 25.36% | 24.44% | 17.82% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $282,733K ÷ ($1,008,510K + $628,535K)
= 17.27%
Sally Beauty Holdings Inc's return on total capital has displayed a fluctuating trend over the past five years. The ratio decreased from 17.82% in 2020 to 17.27% in 2024, with a notable decrease in 2021. This decline could indicate potential inefficiencies in managing the company's capital resources during that year. However, the return on total capital rebounded in 2022 and continued to improve in 2023 before experiencing a slight decrease in 2024. Overall, the company has demonstrated an ability to generate favorable returns on the total capital employed in its operations, although there have been fluctuations in performance over the years. It would be important for stakeholders to further investigate the factors influencing these fluctuations to ensure sustainable and efficient capital utilization in the future.
Peer comparison
Sep 30, 2024