Autodesk Inc (ADSK)
Return on total capital
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,354,000 | 1,170,000 | 949,000 | 617,600 | 597,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,621,000 | 1,855,000 | 1,145,000 | 849,100 | 965,500 |
| Return on total capital | 51.66% | 63.07% | 82.88% | 72.74% | 61.83% |
January 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,354,000K ÷ ($—K + $2,621,000K)
= 51.66%
Autodesk Inc's return on total capital has shown a positive trend over the years based on the provided data. The return on total capital increased from 61.83% as of January 31, 2021, to 72.74% as of January 31, 2022, and further improved to 82.88% as of January 31, 2023, showcasing strong operational efficiency and effective utilization of capital. However, there was a slight decline to 63.07% as of January 31, 2024, followed by a more notable decrease to 51.66% as of January 31, 2025.
While the company managed to achieve high returns on total capital in the earlier years, the declining trend in the most recent years might indicate potential challenges in maintaining the same level of efficiency and profitability. It would be important for Autodesk Inc to assess the underlying reasons for the decrease in return on total capital in the latter years and take necessary steps to address any inefficiencies or improve capital allocation strategies to enhance overall financial performance.
Peer comparison
Jan 31, 2025