Vestis Corporation (VSTS)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 157,951 | 240,436 | 268,593 | 274,121 | 270,896 | 185,214 | 176,421 | |||
| Long-term debt | US$ in thousands | 1,147,730 | 1,394,530 | 1,410,850 | 1,454,800 | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 903,051 | 901,177 | 900,711 | 904,158 | 877,360 | 913,757 | 904,989 | 2,335,810 | 2,335,810 | — |
| Return on total capital | 7.70% | 10.47% | 11.62% | 11.62% | 30.88% | 20.27% | 19.49% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $157,951K ÷ ($1,147,730K + $903,051K)
= 7.70%
From the provided data on Vestis Corporation's return on total capital over multiple quarters, we can observe fluctuations in the ratio.
In the most recent quarter as of September 30, 2024, the return on total capital was 7.70%, a decrease from the previous quarter's 10.47%. This decline may indicate a decrease in the company's ability to generate profits from its total capital employed.
Looking further back, in March 31, 2024, there was a notable increase in the return on total capital to 11.62%. This improvement suggests that the company was able to enhance its profitability in that period.
The trend continues with a stable return on total capital of 11.62% reported in December 31, 2023, showing consistency in the company's ability to generate returns on its total capital base.
The data also highlights a sharp increase in the return on total capital in the quarter ending September 30, 2023, with a significant ratio of 30.88%. This surge could indicate a period of exceptional profitability for Vestis Corporation, potentially driven by efficient capital allocation or increased revenue generation.
Overall, the fluctuations in Vestis Corporation's return on total capital suggest varying levels of financial performance and efficiency in utilizing its total capital over the quarters analyzed. It would be beneficial for the company to further investigate the factors contributing to these fluctuations to make informed strategic decisions and optimize its overall financial health.
Peer comparison
Sep 30, 2024