Sonos Inc (SONO)
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 | 5,127 | 69,282 | 157,517 | -18,596 | 1,423 |
| Long-term debt | US$ in thousands | — | — | 0 | 18,251 | 24,840 |
| Total stockholders’ equity | US$ in thousands | 518,657 | 560,513 | 569,042 | 297,839 | 280,928 |
| Return on total capital | 0.99% | 12.36% | 27.68% | -5.88% | 0.47% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,127K ÷ ($—K + $518,657K)
= 0.99%
To analyze Sonos Inc's return on total capital over the past five years, we can observe a fluctuating trend. In September 2023, the return on total capital stood at -3.96%, marking a decrease from the previous year's 15.97%. However, looking back to October 2021, a significantly higher return of 27.23% was noted. This was preceded by a negative return in October 2020, standing at -8.44%. Notably, in September 2019, the return on total capital was positive, at 1.81%.
Overall, the trend in Sonos Inc's return on total capital indicates volatility and fluctuation over the five-year period, with periods of both positive and negative returns. This variability suggests changing levels of efficiency in utilizing the company's total capital to generate profits. Further analysis would be required to understand the underlying factors driving these fluctuations and their implications for the company's financial performance.
Peer comparison
Sep 30, 2023