US Foods Holding Corp (USFD)
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 | 1,002,000 | 616,000 | 427,000 | -56,000 | 695,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,749,000 | 3,961,000 | 3,735,000 | 3,530,000 | 3,709,000 |
| Return on total capital | 21.10% | 15.55% | 11.43% | -1.59% | 18.74% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,002,000K ÷ ($—K + $4,749,000K)
= 21.10%
The return on total capital for US Foods Holding Corp has exhibited varying trends over the past five years.
In 2023, the company's return on total capital stood at 21.10%, indicating a significant improvement from the previous year's 15.55%. This upward trajectory suggests that the company has been able to generate higher returns relative to the total capital employed in its operations.
Looking back to 2021, the return on total capital was recorded at 11.43%, which represented a notable increase compared to the negative return of -1.59% in 2020. This turnaround reflects a positive shift in the company's ability to generate profits relative to its total invested capital.
In 2019, US Foods Holding Corp achieved a return on total capital of 18.74%, demonstrating a strong performance in leveraging its capital resources to generate returns.
Overall, the upward trend in the return on total capital for the company indicates an improvement in its operational efficiency and profitability, suggesting a positive outlook for its financial performance.
Peer comparison
Dec 31, 2023