Sally Beauty Holdings Inc (SBH)
Return on total capital
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 282,733 | 277,375 | 295,730 | 307,564 | 325,029 | 287,317 | 296,395 | 311,448 | 337,640 | 409,637 | 437,851 | 426,901 | 418,443 | 426,927 | 300,941 | 268,695 | 258,760 | 255,175 | 373,875 | 443,122 |
| Long-term debt | US$ in thousands | 1,008,510 | 986,513 | 988,755 | 1,077,950 | 1,060,960 | 1,066,560 | 1,066,560 | 1,056,350 | 1,037,490 | 1,042,080 | 1,405,760 | 1,423,010 | 1,431,090 | 1,443,150 | 1,655,520 | 1,866,830 | 1,837,100 | 1,829,220 | 1,332,520 | 1,623,970 |
| Total stockholders’ equity | US$ in thousands | 628,535 | 577,670 | 550,850 | 541,340 | 508,748 | 487,712 | 425,888 | 373,298 | 293,636 | 295,871 | 271,866 | 281,021 | 280,741 | 222,270 | 134,833 | 98,866 | 15,443 | -69,133 | -53,195 | 2,199 |
| Return on total capital | 17.27% | 17.73% | 19.21% | 18.99% | 20.71% | 18.49% | 19.86% | 21.78% | 25.36% | 30.62% | 26.10% | 25.05% | 24.44% | 25.63% | 16.81% | 13.67% | 13.97% | 14.50% | 29.22% | 27.25% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $282,733K ÷ ($1,008,510K + $628,535K)
= 17.27%
The return on total capital for Sally Beauty Holdings Inc has shown some fluctuations over the periods provided. The trend indicates that the company has been able to generate a reasonable return on its total invested capital, with figures ranging from 13.67% to 30.62% over the past few years. The return on total capital peaked at 30.62% in the Jun 30, 2022 period, showcasing strong profitability relative to the capital employed.
However, there was a slight decline in the return on total capital in the most recent period, with a figure of 17.27% for Sep 30, 2024, which might require further investigation to understand the reasons behind this decrease. Overall, the company's ability to generate a return on total capital above 15% in most periods reflects positively on its operational efficiency and profitability. It is important for stakeholders to monitor these ratios closely to track the company's performance and financial health over time.
Peer comparison
Sep 30, 2024