Agilysys Inc (AGYS)

Return on total capital

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	17,971	18,828	15,647	14,224	15,760	13,180	10,180	7,794	6,524	-20,026	-23,475	-18,516	-21,190	-23,368	-23,951	-32,816	-33,857	-10,438	-11,839	-12,699
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	236,477	230,273	116,618	111,686	109,310	111,912	106,594	101,276	97,344	92,413	87,718	84,487	79,876	81,779	77,924	71,350	71,757	96,936	98,365	99,923
Return on total capital		7.60%	8.18%	13.42%	12.74%	14.42%	11.78%	9.55%	7.70%	6.70%	-21.67%	-26.76%	-21.92%	-26.53%	-28.57%	-30.74%	-45.99%	-47.18%	-10.77%	-12.04%	-12.71%

March 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $17,971K ÷ ($—K + $236,477K)
= 7.60%

Agilysys Inc's return on total capital fluctuated over the past several quarters. The return on total capital ranged from negative figures in the range of -21.67% to -47.18% in the latter half of 2019 through mid-2020, indicating significant capital inefficiency during that period. Subsequently, there was a gradual improvement in the return on total capital, reaching positive figures in the range of 6.70% to 14.42% throughout 2021 and 2022.

The highest returns were observed in the range of 12.74% to 14.42% in the first half of 2023, signaling improved capital utilization efficiency. However, a slight decline was noted in the most recent quarter, with a return on total capital of 7.60%. Overall, Agilysys Inc's return on total capital has shown a positive recovery trend in recent years, indicating better utilization of capital resources to generate profits.