Vestis Corporation (VSTS)
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 | ||
|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 274,121 | 270,896 | 185,214 | 176,421 | |||
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 904,158 | 877,360 | 913,757 | 904,989 | 2,335,810 | 2,335,810 | — |
| Return on total capital | 30.32% | 30.88% | 20.27% | 19.49% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $274,121K ÷ ($—K + $904,158K)
= 30.32%
Vestis Corporation has demonstrated a consistent and favorable trend in its return on total capital over the past several quarters. The return on total capital has remained above 20% in each of the last four quarters, indicating efficient utilization of both debt and equity to generate profits. The highest return was observed in the most recent quarter, at 30.88%, suggesting an improvement in the company's capital management and profitability. This trend of strong return on total capital reflects Vestis Corporation's ability to generate earnings relative to the total capital invested in the business, signaling financial strength and effective resource allocation.
Peer comparison
Dec 31, 2023