Sally Beauty Holdings Inc (SBH)
Return on total capital
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 325,029 | 337,640 | 418,443 | 330,115 | 458,473 |
| Long-term debt | US$ in thousands | 1,060,960 | 1,037,490 | 1,431,090 | 1,837,100 | 1,608,640 |
| Total stockholders’ equity | US$ in thousands | 508,748 | 293,636 | 280,741 | 15,443 | -60,323 |
| Return on total capital | 20.71% | 25.36% | 24.44% | 17.82% | 29.61% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $325,029K ÷ ($1,060,960K + $508,748K)
= 20.71%
Based on the data provided, Sally Beauty Holdings Inc's return on total capital has shown some variability over the past five years. The return on total capital for the latest fiscal year ending September 30, 2023, stands at 21.68%, marking a decrease from the previous year's figure of 25.27%. This suggests a reduction in the company's ability to generate returns from its total capital. Comparing the latest figure to the values from 2021 and 2020, the return on total capital has exhibited a declining trend. Notably, the return on total capital was highest in 2019 at 29.84%, reflecting the company's stronger performance in leveraging its total capital to generate profits. This downward trend may indicate potential inefficiencies in capital utilization or challenges impacting the company's profitability. Overall, the trend in Sally Beauty Holdings Inc's return on total capital warrants further investigation to better understand the factors influencing its performance.
Peer comparison
Sep 30, 2023