Avnet Inc (AVT)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 915,130 | 1,233,740 | 933,709 | 262,402 | -6,843 |
| Long-term debt | US$ in thousands | 2,406,630 | 2,988,030 | 1,437,400 | 1,191,330 | 1,424,790 |
| Total stockholders’ equity | US$ in thousands | 4,925,500 | 4,751,670 | 4,192,760 | 4,084,180 | 3,726,400 |
| Return on total capital | 12.48% | 15.94% | 16.58% | 4.97% | -0.13% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $915,130K ÷ ($2,406,630K + $4,925,500K)
= 12.48%
Avnet Inc's return on total capital has fluctuated over the past five years, ranging from -0.13% in 2020 to a peak of 16.58% in 2022. The return on total capital decreased in 2021 to 4.97% but showed signs of recovery in 2023 and 2024 at 15.94% and 12.48% respectively. This indicates that Avnet Inc has been able to generate a positive return on the capital invested in the company, although there have been fluctuations in performance. It is essential for the company to continue monitoring and improving its return on total capital to ensure sustained profitability and efficiency in its operations.
Peer comparison
Jun 30, 2024