Agilysys Inc (AGYS)
Return on total capital
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 20,684 | 15,764 | 6,523 | -21,189 | -33,857 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 236,477 | 109,310 | 97,344 | 79,876 | 71,757 |
| Return on total capital | 8.75% | 14.42% | 6.70% | -26.53% | -47.18% |
March 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $20,684K ÷ ($—K + $236,477K)
= 8.75%
Agilysys Inc's return on total capital has varied significantly over the past five years. In the most recent fiscal year ending on March 31, 2024, the company achieved a return on total capital of 8.75%, indicating a moderate level of profitability generated from its total invested capital. This figure represents a decrease compared to the previous year when the return on total capital was 14.42%.
Looking back at the financial performance of Agilysys Inc, the return on total capital was 6.70% in fiscal year 2022, indicating a slight improvement from the prior year. However, in fiscal year 2021 and 2020, the company experienced negative returns on total capital, with figures of -26.53% and -47.18% respectively. These negative values suggest that Agilysys Inc was not able to generate sufficient profits relative to the total capital invested during those periods.
Overall, the trend in Agilysys Inc's return on total capital has shown volatility, with fluctuations in profitability levels. It is essential for the company to consistently monitor and enhance its operational efficiency and capital allocation to improve its return on total capital and drive sustainable long-term value for its stakeholders.
Peer comparison
Mar 31, 2024