SpartanNash Co (SPTN)
Return on total capital
| Dec 31, 2023 | Oct 7, 2023 | Jul 15, 2023 | Apr 22, 2023 | Dec 31, 2022 | Oct 8, 2022 | Apr 23, 2022 | Dec 31, 2021 | Oct 9, 2021 | Jul 17, 2021 | Apr 24, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jul 11, 2020 | Apr 18, 2020 | Dec 31, 2019 | Oct 5, 2019 | Jul 13, 2019 | Apr 20, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 110,012 | 95,224 | 91,435 | 83,329 | 91,345 | 104,548 | 110,411 | 112,507 | 96,777 | 103,068 | 111,172 | 103,782 | 97,795 | 74,139 | 39,045 | 37,948 | 14,470 | 36,009 | 67,056 | 70,963 |
| Long-term debt | US$ in thousands | — | — | — | — | 4,813 | — | — | 5,617 | — | — | — | 6,707 | — | — | — | 8,633 | — | — | — | 4,447 |
| Total stockholders’ equity | US$ in thousands | 778,182 | 777,267 | 768,397 | 759,454 | 766,068 | 780,410 | 795,304 | 782,869 | 765,566 | 756,176 | 750,520 | 735,049 | 723,451 | 709,251 | 685,692 | 687,538 | 689,296 | 687,645 | 693,802 | 715,947 |
| Return on total capital | 14.14% | 12.25% | 11.90% | 10.97% | 11.85% | 13.40% | 13.88% | 14.27% | 12.64% | 13.63% | 14.81% | 13.99% | 13.52% | 10.45% | 5.69% | 5.45% | 2.10% | 5.24% | 9.67% | 9.85% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $110,012K ÷ ($—K + $778,182K)
= 14.14%
SpartanNash Co's return on total capital has exhibited fluctuations over the past few quarters. The return on total capital was relatively stable in the range of 10% to 15% from Dec 31, 2018, to Apr 24, 2021, with the highest return recorded at 14.81% in that period. Subsequently, there was a decline in the return on total capital in the following quarters until Apr 18, 2020, where it dropped to 5.69%.
However, there was a noticeable improvement in the return on total capital in the subsequent quarters, reaching 14.14% by Dec 31, 2023. This indicates that the company was able to effectively utilize its total capital to generate returns for its shareholders. It is essential for stakeholders to monitor this ratio closely to assess the company's efficiency in generating profits from its total capital investments.
Peer comparison
Dec 31, 2023