Sonos Inc (SONO)
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 | -34,023 | 2,949 | -27,086 | -13,699 | 5,104 | -29,856 | -14,879 | 49,877 | 69,255 | 122,865 | 144,095 | 147,100 | 157,552 | 190,042 | 114,813 | 50,206 | -18,587 | -65,755 | -21,870 | 9,455 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | 0 | 0 | 0 | 0 | 18,251 | 19,897 | 21,545 | 23,192 |
| Total stockholders’ equity | US$ in thousands | 428,620 | 464,391 | 494,004 | 594,409 | 518,657 | 590,210 | 612,914 | 633,354 | 560,513 | 642,736 | 671,684 | 679,607 | 569,042 | 587,127 | 579,268 | 510,209 | 297,839 | 261,199 | 299,804 | 367,279 |
| Return on total capital | -7.94% | 0.64% | -5.48% | -2.30% | 0.98% | -5.06% | -2.43% | 7.88% | 12.36% | 19.12% | 21.45% | 21.64% | 27.69% | 32.37% | 19.82% | 9.84% | -5.88% | -23.39% | -6.81% | 2.42% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-34,023K ÷ ($—K + $428,620K)
= -7.94%
Sonos Inc's return on total capital has displayed volatility over the past several quarters. The return on total capital was negative in three out of the last five quarters, with the lowest being -7.94% in September 2024. This indicates that the company may not be efficiently utilizing its total capital to generate profitability during those periods.
However, there have been periods of positive performance, with the highest return on total capital being 32.37% in June 2021. This suggests that during those periods, Sonos Inc was able to generate a significant return relative to its total capital employed.
Overall, the trend in return on total capital for Sonos Inc has shown fluctuations, indicating varying levels of efficiency in capital allocation and profitability generation over the analyzed periods. Further analysis and monitoring of the company's financial performance and capital management strategies may be warranted to understand the factors driving these fluctuations.
Peer comparison
Sep 30, 2024