Tractor Supply Company (TSCO)
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 | 1,467,530 | 1,478,910 | 1,434,940 | 1,306,700 | 996,928 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,270,330 | 2,149,760 | 2,042,420 | 2,002,660 | 1,923,840 |
| Return on total capital | 64.64% | 68.79% | 70.26% | 65.25% | 51.82% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,467,530K ÷ ($—K + $2,270,330K)
= 64.64%
Tractor Supply Company's return on total capital has shown a consistently upward trend from 51.82% on December 31, 2020, reaching a peak of 70.26% on December 31, 2022. Although there was a slight decrease to 64.64% on December 31, 2024, the company's ability to generate returns on the total capital invested remains strong overall. This indicates that Tractor Supply Company has been effectively utilizing its capital to generate profits and create value for its investors. The company's consistent performance in this metric suggests a sound financial management strategy and operational efficiency.
Peer comparison
Dec 31, 2024