American Woodmark Corporation (AMWD)
Return on total capital
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 136,879 | 138,702 | 146,547 | 151,060 | 160,175 | 164,738 | 158,297 | 158,768 | 138,680 | 145,301 | 57,466 | 19,251 | -5,380 | -28,729 | 65,708 | 98,063 | 119,794 | 122,589 | 116,249 | 116,638 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 915,998 | 919,564 | 915,062 | 913,839 | 910,376 | 896,910 | 895,580 | 894,365 | 873,788 | 843,140 | 829,179 | 792,538 | 772,883 | 750,953 | 743,139 | 737,101 | 742,896 | 763,391 | 745,194 | 721,520 |
| Return on total capital | 14.94% | 15.08% | 16.01% | 16.53% | 17.59% | 18.37% | 17.68% | 17.75% | 15.87% | 17.23% | 6.93% | 2.43% | -0.70% | -3.83% | 8.84% | 13.30% | 16.13% | 16.06% | 15.60% | 16.17% |
April 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $136,879K ÷ ($—K + $915,998K)
= 14.94%
The analysis of American Woodmark Corporation’s return on total capital over the period from July 31, 2020, to April 30, 2025, reveals notable fluctuations and an overall positive trend. Initially, the return hovered around approximately 16.17% in July 2020, with slight variations through October 2020 and January 2021, maintaining a range roughly between 15.60% and 16.13%. During this period, the company demonstrated effective utilization of its capital to generate earnings.
However, starting from July 2021, there was a material decline in the return, dropping to 13.30%, and further plunging to as low as 8.84% by October 2021. The most significant downturn occurred in early 2022, with the return turning negative—recorded at -3.83% in January 2022 and -0.70% in April 2022—indicating a period where the company was less effective at generating profits relative to its total capital, possibly due to operational or market challenges.
Subsequently, there was a recovery phase: by July 2022, the return rose to 2.43%, and by October 2022, it increased further to 6.93%. This upward movement continued into 2023, reaching a peak of 17.23% in January 2023, surpassing pre-downturn levels, and sustaining a healthy range through April and July 2023, with values of 15.87% and 17.75%, respectively. The data indicates a period of strong performance and efficient capital deployment during this phase.
Moving into late 2023 and early 2024, the return remained relatively high at approximately 17.68% to 18.37%, but showed slight signs of moderation subsequently. By October 2024, the return had decreased marginally to around 16.01%, with further declines noted in 2025, reaching approximately 15.08% in January and 14.94% in April. These later figures suggest a gradual reduction in the efficiency of capital utilization, possibly reflective of market adjustments or shifting operational conditions.
Overall, the trend demonstrates a pattern of initial stability, followed by a period of decline and negative returns, a subsequent recovery to high performance levels, and a modest decline toward the latter part of the period analyzed. The fluctuations reflect the company’s sensitivity to market dynamics and operational factors affecting profitability relative to its total capital base.