Tractor Supply Company (TSCO)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,467,532 | 1,483,418 | 1,499,723 | 1,497,597 | 1,478,912 | 1,503,887 | 1,469,394 | 1,435,097 | 1,434,943 | 1,368,787 | 1,359,600 | 1,320,448 | 1,306,698 | 1,198,111 | 1,153,063 | 1,114,926 | 996,928 | 1,002,899 | 912,539 | 752,350 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,270,330 | 2,288,760 | 2,305,330 | 2,124,010 | 2,149,760 | 2,111,130 | 2,087,150 | 1,914,550 | 2,042,420 | 1,941,140 | 1,913,870 | 1,790,020 | 2,002,660 | 2,020,750 | 1,980,110 | 1,852,300 | 1,923,840 | 1,875,870 | 1,695,730 | 1,353,720 |
| Return on total capital | 64.64% | 64.81% | 65.05% | 70.51% | 68.79% | 71.24% | 70.40% | 74.96% | 70.26% | 70.51% | 71.04% | 73.77% | 65.25% | 59.29% | 58.23% | 60.19% | 51.82% | 53.46% | 53.81% | 55.58% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,467,532K ÷ ($—K + $2,270,330K)
= 64.64%
Tractor Supply Company's return on total capital has shown fluctuations over the past few years. The ratio, which represents the company's ability to generate profits from invested capital, stood at 55.58% as of March 31, 2020, and displayed a generally increasing trend reaching its peak at 74.96% by March 31, 2023.
Following this peak, the return on total capital experienced a slight decline, with a dip to 64.64% by December 31, 2024. Despite the fluctuations observed, the company has generally maintained a strong performance in terms of generating returns on the total capital employed. It is essential for stakeholders to continue monitoring this ratio to assess the efficiency and profitability of Tractor Supply Company in utilizing its capital resources effectively.
Peer comparison
Dec 31, 2024