Tractor Supply is the largest retailer specifically targeting rural/semirural customers in the U.S. The average customer is a middle-income earner, married with children, owns a home and most importantly owns livestock (>50%) or a pet (almost 75%). Average customers shop 6 times per year and the best customers shop 2x-3x that number. Some of Tractor Supply’s customers are recreational farmers or ranchers but most are just living the rural/semirural lifestyle and shop at Tractor Supply for their everyday needs.
Really enjoyed this write-up I just had a quick question about how you calculate “net capital deployed” in your ROIC calculation. I’m sure it is different for every company, but what are some general rules for finding that figure?
Apologies for the late response. I calculate incremental capital deployed as just capex + acquisitions - sale of assets. It's not perfect by any means. And whether its growth capex or maintenance capex, I lump it together to find out what the returns could be like.
Really enjoyed this write-up I just had a quick question about how you calculate “net capital deployed” in your ROIC calculation. I’m sure it is different for every company, but what are some general rules for finding that figure?
Apologies for the late response. I calculate incremental capital deployed as just capex + acquisitions - sale of assets. It's not perfect by any means. And whether its growth capex or maintenance capex, I lump it together to find out what the returns could be like.
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Five Below and TS may be the winner takes all on th elong rund , this analyssys show brilliantly why