AeroVironment Inc (AVAV)
Return on total capital
| Apr 30, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 30, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | Apr 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | Apr 30, 2020 | Jul 27, 2019 | Apr 30, 2019 | Oct 27, 2018 | Jul 28, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 71,824 | -99,803 | -109,530 | -149,022 | -178,663 | 32 | -18,701 | -1,048 | -9,887 | -5,140 | 22,884 | 31,842 | 65,250 | 66,385 | 57,630 | 51,977 | 44,880 | 53,852 | 48,868 | 52,755 |
| Long-term debt | US$ in thousands | 17,092 | 31,292 | 73,678 | 118,537 | 125,904 | 155,763 | 155,622 | 175,481 | 177,840 | 180,398 | 182,769 | 185,141 | 187,512 | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 822,745 | 812,985 | 793,730 | 574,545 | 550,970 | 621,513 | 607,483 | 599,923 | 607,969 | 602,428 | 599,902 | 598,240 | 612,093 | 523,906 | 519,929 | 509,901 | 481,506 | 462,571 | 444,176 | 437,050 |
| Return on total capital | 8.55% | -11.82% | -12.63% | -21.50% | -26.40% | 0.00% | -2.45% | -0.14% | -1.26% | -0.66% | 2.92% | 4.06% | 8.16% | 12.67% | 11.08% | 10.19% | 9.32% | 11.64% | 11.00% | 12.07% |
April 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $71,824K ÷ ($17,092K + $822,745K)
= 8.55%
AeroVironment Inc's return on total capital has exhibited volatility over the past several quarters. The company's return on total capital was negative in three consecutive quarters from October 2023 to January 2024, indicating that during those periods, the company's capital deployment was not generating sufficient returns to cover its cost of capital.
However, the return on total capital improved significantly in the April 2024 quarter, reaching 8.55%, which suggests a more efficient allocation of capital resulting in a positive return for the investors. This improvement may indicate better operational performance or strategic decisions made by the company.
Overall, AeroVironment Inc's return on total capital has shown fluctuations over the past few quarters, with periods of negative returns followed by more positive returns. It will be important to monitor future quarters to assess the company's ability to sustain and potentially increase its return on total capital.
Peer comparison
Apr 30, 2024