Tractor Supply Company (TSCO)
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 | 1,478,910 | 1,434,940 | 1,306,700 | 996,928 | 743,220 |
| Long-term debt | US$ in thousands | 1,728,960 | 1,164,060 | 986,382 | 984,324 | 366,480 |
| Total stockholders’ equity | US$ in thousands | 2,149,760 | 2,042,420 | 2,002,660 | 1,923,840 | 1,567,120 |
| Return on total capital | 38.13% | 44.75% | 43.72% | 34.28% | 38.44% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,478,910K ÷ ($1,728,960K + $2,149,760K)
= 38.13%
Tractor Supply Company's return on total capital has exhibited fluctuations over the past five years. The return on total capital was highest in 2022 at 44.75% and lowest in 2020 at 34.28%. The company's return on total capital for the most recent year, 2023, was 38.13%. This indicates that the company generated a return of 38.13% on its total capital employed in the business during the year. Overall, Tractor Supply Company has generally maintained a strong return on total capital, suggesting efficiency in generating profits relative to the total capital invested in the business.
Peer comparison
Dec 31, 2023