SpartanNash Co (SPTN)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 83,170 | -23,326 | 23,391 | 38,725 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 743,490 | 778,182 | 766,068 | 782,869 | 735,049 |
| Return on total capital | 0.00% | 10.69% | -3.04% | 2.99% | 5.27% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $743,490K)
= 0.00%
SpartanNash Co's return on total capital has demonstrated fluctuations over the five-year period from 2020 to 2024. In 2020, the return on total capital stood at 5.27%, indicating the company's ability to generate profits relative to the total capital employed. However, in 2021, this metric declined to 2.99%, suggesting a decrease in the efficiency of capital utilization.
The trend worsened in 2022 when SpartanNash Co reported a negative return on total capital of -3.04%. A negative return implies that the company's capital investments may not have been generating sufficient returns, potentially indicating operational or financial challenges.
The company showed a significant improvement in 2023, with a return on total capital of 10.69%, surpassing the level seen in 2020. This indicates a notable rebound in profitability and efficiency in capital allocation.
However, the positive trend did not continue into 2024 as SpartanNash Co reported a return on total capital of 0.00%, signaling a stagnation in the company's ability to generate profits relative to its total capital base.
Overall, SpartanNash Co's return on total capital has exhibited variability over the five-year period, reflecting fluctuations in the company's profitability and capital efficiency. Monitoring this metric closely can provide insights into the company's financial performance and effectiveness in utilizing its capital resources.
Peer comparison
Dec 31, 2024