Avnet Inc (AVT)
Return on total capital
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 496,971 | 919,674 | 1,233,740 | 933,709 | 262,402 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,011,500 | 4,925,500 | 4,751,670 | 4,192,760 | 4,084,180 |
| Return on total capital | 9.92% | 18.67% | 25.96% | 22.27% | 6.42% |
June 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $496,971K ÷ ($—K + $5,011,500K)
= 9.92%
The analysis of Avnet Inc's return on total capital over the specified period indicates notable fluctuations and an overall upward trend followed by a subsequent decline. On June 30, 2021, the return on total capital stood at 6.42%, reflecting relatively modest profitability relative to the company's entire capital base. This figure experienced a significant increase by June 30, 2022, reaching 22.27%, which suggests a substantial improvement in the company's efficiency in generating earnings from its capital investments. The upward trajectory continued into June 30, 2023, with the return escalating further to 25.96%, indicative of strong operational performance and effective capital utilization during this period.
However, starting from June 30, 2024, the return on total capital declined sharply to 18.67%, signaling a deterioration in profitability or possibly increased capital costs. This decline persisted into the next fiscal year, with the figure dropping again to 9.92% as of June 30, 2025. The downward trend may reflect challenges such as rising expenses, lower margins, or strategic shifts impacting overall capital efficiency.
In summary, Avnet Inc experienced rapid growth in return on total capital from 2021 through 2023, demonstrating enhanced profitability and capital management during these years. Nonetheless, the subsequent decrease in 2024 and 2025 could warrant further investigation into underlying operational, strategic, or market factors affecting the company's capacity to generate returns on its invested capital.
Peer comparison
Jun 30, 2025