RAC Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Rent-A-Center Inc - Alpha Spread
R

Rent-A-Center Inc
F:RAC

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Rent-A-Center Inc
F:RAC
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Price: 27.8 EUR 0.72% Market Closed
Market Cap: 1.5B EUR
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Rent-A-Center Inc

Revenue
4.2B USD
Cost of Revenue
-2.1B USD
Gross Profit
2.1B USD
Operating Expenses
-1.8B USD
Operating Income
286.8m USD
Other Expenses
-232m USD
Net Income
54.8m USD

Margins Comparison
Rent-A-Center Inc Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
US
Rent-A-Center Inc
F:RAC
1.5B EUR
50%
7%
1%
US
Best Buy Co Inc
NYSE:BBY
20.9B USD
22%
4%
3%
JP
Hikari Tsushin Inc
TSE:9435
1.4T JPY
52%
16%
22%
US
GameStop Corp
NYSE:GME
9.3B USD
26%
-1%
1%
AU
JB Hi-Fi Ltd
ASX:JBH
8.7B AUD
22%
7%
5%
VN
Mobile World Investment Corp
VN:MWG
99.4T VND
20%
2%
2%
JP
Yamada Holdings Co Ltd
TSE:9831
374.3B JPY
28%
3%
1%
SA
United Electronics Company JSC
SAU:4003
7.2B SAR
22%
9%
7%
JP
Bic Camera Inc
TSE:3048
264B JPY
26%
3%
1%
CN
Suning.Com Co Ltd
SZSE:002024
12.9B CNY
19%
-1%
-4%
JP
K'S Holdings Corp
TSE:8282
258.3B JPY
28%
3%
1%
Country US
Market Cap 1.5B EUR
Gross Margin
50%
Operating Margin
7%
Net Margin
1%
Country US
Market Cap 20.9B USD
Gross Margin
22%
Operating Margin
4%
Net Margin
3%
Country JP
Market Cap 1.4T JPY
Gross Margin
52%
Operating Margin
16%
Net Margin
22%
Country US
Market Cap 9.3B USD
Gross Margin
26%
Operating Margin
-1%
Net Margin
1%
Country AU
Market Cap 8.7B AUD
Gross Margin
22%
Operating Margin
7%
Net Margin
5%
Country VN
Market Cap 99.4T VND
Gross Margin
20%
Operating Margin
2%
Net Margin
2%
Country JP
Market Cap 374.3B JPY
Gross Margin
28%
Operating Margin
3%
Net Margin
1%
Country SA
Market Cap 7.2B SAR
Gross Margin
22%
Operating Margin
9%
Net Margin
7%
Country JP
Market Cap 264B JPY
Gross Margin
26%
Operating Margin
3%
Net Margin
1%
Country CN
Market Cap 12.9B CNY
Gross Margin
19%
Operating Margin
-1%
Net Margin
-4%
Country JP
Market Cap 258.3B JPY
Gross Margin
28%
Operating Margin
3%
Net Margin
1%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Rent-A-Center Inc Competitors

Country Company Market Cap ROE ROA ROCE ROIC
US
Rent-A-Center Inc
F:RAC
1.5B EUR
9%
2%
15%
5%
US
Best Buy Co Inc
NYSE:BBY
20.9B USD
42%
8%
25%
16%
JP
Hikari Tsushin Inc
TSE:9435
1.4T JPY
18%
7%
6%
6%
US
GameStop Corp
NYSE:GME
9.3B USD
2%
1%
-1%
-2%
AU
JB Hi-Fi Ltd
ASX:JBH
8.7B AUD
29%
13%
31%
19%
VN
Mobile World Investment Corp
VN:MWG
99.4T VND
9%
4%
10%
9%
JP
Yamada Holdings Co Ltd
TSE:9831
374.3B JPY
4%
2%
5%
2%
SA
United Electronics Company JSC
SAU:4003
7.2B SAR
36%
10%
22%
19%
JP
Bic Camera Inc
TSE:3048
264B JPY
6%
2%
9%
4%
CN
Suning.Com Co Ltd
SZSE:002024
12.9B CNY
-17%
-2%
-2%
-1%
JP
K'S Holdings Corp
TSE:8282
258.3B JPY
3%
2%
7%
3%
Country US
Market Cap 1.5B EUR
ROE
9%
ROA
2%
ROCE
15%
ROIC
5%
Country US
Market Cap 20.9B USD
ROE
42%
ROA
8%
ROCE
25%
ROIC
16%
Country JP
Market Cap 1.4T JPY
ROE
18%
ROA
7%
ROCE
6%
ROIC
6%
Country US
Market Cap 9.3B USD
ROE
2%
ROA
1%
ROCE
-1%
ROIC
-2%
Country AU
Market Cap 8.7B AUD
ROE
29%
ROA
13%
ROCE
31%
ROIC
19%
Country VN
Market Cap 99.4T VND
ROE
9%
ROA
4%
ROCE
10%
ROIC
9%
Country JP
Market Cap 374.3B JPY
ROE
4%
ROA
2%
ROCE
5%
ROIC
2%
Country SA
Market Cap 7.2B SAR
ROE
36%
ROA
10%
ROCE
22%
ROIC
19%
Country JP
Market Cap 264B JPY
ROE
6%
ROA
2%
ROCE
9%
ROIC
4%
Country CN
Market Cap 12.9B CNY
ROE
-17%
ROA
-2%
ROCE
-2%
ROIC
-1%
Country JP
Market Cap 258.3B JPY
ROE
3%
ROA
2%
ROCE
7%
ROIC
3%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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