Tractor Supply Company (TSCO)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 743,220 | 733,164 | 724,495 | 710,396 |
| Long-term debt | US$ in thousands | 1,728,960 | 1,728,260 | 1,727,500 | 1,601,560 | 1,164,060 | 1,077,900 | 987,400 | 986,900 | 986,382 | 985,867 | 985,353 | 984,838 | 984,324 | 529,300 | 536,051 | 989,074 | 366,480 | 613,885 | 466,290 | 605,695 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,567,120 | 1,491,820 | 1,544,940 | 1,485,580 |
| Return on total capital | 38.13% | 39.17% | 38.52% | 40.81% | 44.75% | 45.34% | 46.86% | 47.55% | 43.72% | 39.85% | 38.88% | 39.30% | 34.28% | 41.70% | 40.89% | 32.11% | 38.44% | 34.82% | 36.02% | 33.97% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,478,912K ÷ ($1,728,960K + $2,149,760K)
= 38.13%
Tractor Supply Company has demonstrated relatively consistent performance in terms of return on total capital over the past few quarters. The return on total capital has ranged from a low of 32.11% in March 2020 to a high of 47.55% in March 2022. The company's return on total capital has generally been above 35%, indicating that it has been efficient in generating profits relative to the total capital employed in its operations.
The trend in return on total capital shows slight fluctuations but remains relatively strong and healthy overall. The company's ability to generate returns on its total capital above 35% reflects efficient capital utilization and effective management of both debt and equity. This indicates that Tractor Supply Company has been successful in effectively deploying its capital to generate profits for its stakeholders.
Overall, the return on total capital trend suggests that Tractor Supply Company has been successful in generating solid returns relative to the capital invested in the business, which may be indicative of sound operational performance and financial management practices.
Peer comparison
Dec 31, 2023