SpartanNash Co (SPTN)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 110,012 | 69,706 | 112,508 | 103,782 | 37,948 |
| Long-term debt | US$ in thousands | — | 4,813 | 5,617 | 6,707 | 8,633 |
| Total stockholders’ equity | US$ in thousands | 778,182 | 766,068 | 782,869 | 735,049 | 687,538 |
| Return on total capital | 14.14% | 9.04% | 14.27% | 13.99% | 5.45% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $110,012K ÷ ($—K + $778,182K)
= 14.14%
SpartanNash Co's return on total capital has exhibited variability over the past five years. The company's return on total capital increased from 5.45% in 2019 to 14.27% in 2021, before experiencing a slight decline to 13.99% in 2020. However, in 2022, there was a decrease in the return on total capital to 9.04%, followed by a rebound to 14.14% in 2023.
The upward trend from 2019 to 2021 indicates an improvement in the company's ability to generate returns on its total capital employed. The significant increase in 2021 suggests effective capital utilization and possibly improved operational efficiency during that period. The subsequent decrease in 2022 may warrant further investigation into potential factors impacting the company's profitability. The rebound in 2023 to 14.14% indicates a recovery or potentially enhanced performance in capital efficiency.
Overall, SpartanNash Co's return on total capital demonstrates fluctuations year-over-year, reflecting varying levels of profitability and capital utilization efficiency within the organization. Monitoring this metric longitudinally can provide insights into the company's financial performance and operational effectiveness.
Peer comparison
Dec 31, 2023