Avnet Inc (AVT)
Return on total capital
| Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 915,130 | 1,014,982 | 1,154,820 | 1,289,114 | 1,233,746 | 1,246,824 | 1,205,481 | 1,056,736 | 933,710 | 770,229 | 588,753 | 431,232 | 262,402 | 156,700 | -64,131 | -75,507 | -6,842 | -43,026 | 240,271 | 294,019 |
| Long-term debt | US$ in thousands | 2,406,630 | 2,406,420 | 2,753,520 | 3,101,900 | 2,988,030 | 3,032,860 | 2,979,820 | 1,825,510 | 1,437,400 | 922,041 | 1,144,590 | 1,389,690 | 1,191,330 | 895,913 | 895,639 | 1,195,200 | 1,424,790 | 1,194,240 | 1,194,120 | 1,191,980 |
| Total stockholders’ equity | US$ in thousands | 4,925,500 | 4,989,100 | 5,010,380 | 4,822,580 | 4,751,670 | 4,635,600 | 4,429,660 | 4,019,340 | 4,192,760 | 4,256,720 | 4,203,230 | 4,145,600 | 4,084,180 | 3,937,890 | 3,910,730 | 3,777,510 | 3,726,400 | 3,677,280 | 3,957,330 | 3,958,070 |
| Return on total capital | 12.48% | 13.72% | 14.87% | 16.27% | 15.94% | 16.26% | 16.27% | 18.08% | 16.58% | 14.87% | 11.01% | 7.79% | 4.97% | 3.24% | -1.33% | -1.52% | -0.13% | -0.88% | 4.66% | 5.71% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $915,130K ÷ ($2,406,630K + $4,925,500K)
= 12.48%
The return on total capital of Avnet Inc has shown fluctuating trends over the past few quarters. It peaked at 18.08% in September 2022, indicating that the company was efficiently generating returns from its total capital investments. However, there was a subsequent decline in the return on total capital to 13.72% by March 2024 before increasing again to 14.87% by December 2023.
Despite the fluctuations, the company managed to sustain relatively favorable return on total capital figures above 10% for most of the period under review. The positive trend in the return on total capital from December 2020 to March 2023 suggests that Avnet Inc was effectively utilizing its total capital to generate profits. However, there was a noticeable decrease in performance in the later quarters.
Overall, while the return on total capital of Avnet Inc has shown variability, the company has generally been able to generate satisfactory returns from its total capital investments, with some quarters exhibiting stronger performance than others.
Peer comparison
Jun 30, 2024