Vestis Corporation (VSTS)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 158,593 | 217,909 | 192,243 | 96,239 | 149,720 |
| Long-term debt | US$ in thousands | 1,147,730 | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 903,051 | 877,360 | 2,335,810 | 2,331,980 | — |
| Return on total capital | 7.73% | 24.84% | 8.23% | 4.13% | — |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $158,593K ÷ ($1,147,730K + $903,051K)
= 7.73%
Vestis Corporation's return on total capital has shown variability over the past five years, ranging from 4.13% in 2021 to 24.84% in 2023. The return on total capital for the most recent period as of September 30, 2024, stands at 7.73%. This signifies a decline from the prior year's performance but remains positive.
The fluctuation in return on total capital suggests potential shifts in the company's operational efficiency and effectiveness in generating returns from its total invested capital. Vestis Corporation may need to assess the factors influencing this metric, such as profitability levels, capital structure, asset utilization, and overall performance, to enhance its financial performance and ensure sustainable growth in the future. Additionally, comparisons with industry benchmarks and trend analysis could provide further insights into the company's competitive position and long-term viability.
Peer comparison
Sep 30, 2024