US Foods Holding Corp (USFD)
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 | 1,002,000 | 924,000 | 933,000 | 764,000 | 616,000 | 558,000 | 480,000 | 455,000 | 427,000 | 318,000 | 261,000 | 76,000 | -56,000 | 87,000 | 191,000 | 442,000 | 695,000 | 691,000 | 685,000 | 698,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,749,000 | 4,692,000 | 4,604,000 | 4,179,000 | 3,961,000 | 3,927,000 | 3,804,000 | 3,722,000 | 3,735,000 | 3,648,000 | 3,573,000 | 3,500,000 | 3,530,000 | 3,515,000 | 3,500,000 | 3,582,000 | 3,709,000 | 3,557,000 | 3,435,000 | 3,310,000 |
| Return on total capital | 21.10% | 19.69% | 20.26% | 18.28% | 15.55% | 14.21% | 12.62% | 12.22% | 11.43% | 8.72% | 7.30% | 2.17% | -1.59% | 2.48% | 5.46% | 12.34% | 18.74% | 19.43% | 19.94% | 21.09% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 shown a positive trend over the past periods, with the ratio fluctuating between 21.10% at the end of December 2023 and 2.17% at the end of March 2021. An increasing trend in the return on total capital indicates that the company is generating more profit from its total capital investments.
The return on total capital peaked at 21.10% at the end of December 2023, suggesting that the company achieved a high return relative to the total capital employed during that period. This is a positive indicator of the company's efficiency in utilizing its capital to generate profits for its investors.
Conversely, the lowest return on total capital was recorded at -1.59% at the end of September 2020, indicating that the company may have experienced losses relative to its total capital investments during that period. However, the company managed to gradually improve its performance and achieve positive returns in subsequent periods.
Overall, the upward trend in the return on total capital for US Foods Holding Corp reflects improving profitability and efficiency in capital allocation over time, which is generally a favorable signal for investors and stakeholders.
Peer comparison
Dec 31, 2023