Acuity Brands Inc (AYI)
Return on total capital
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 474,600 | 520,900 | 420,400 | 351,100 | 461,300 |
| Long-term debt | US$ in thousands | 495,600 | 495,000 | 494,300 | 376,800 | 347,500 |
| Total stockholders’ equity | US$ in thousands | 2,015,400 | 1,911,800 | 2,044,500 | 2,127,500 | 1,918,900 |
| Return on total capital | 18.90% | 21.64% | 16.56% | 14.02% | 20.35% |
August 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $474,600K ÷ ($495,600K + $2,015,400K)
= 18.90%
Acuity Brands, Inc.'s return on total capital has shown fluctuation over the past five years. In 2023, the return on total capital stood at 19.92%, which was slightly lower compared to the previous year's figure of 21.02%. This decrease may indicate a potential decline in the company's efficiency in generating returns from its total capital employed. However, compared to 2021 and 2020, the return on total capital has shown improvement, signifying enhanced capital utilization and financial performance. It is worth noting that in 2019, the return on total capital was at 20.42%, representing a peak in the company's performance over the observed period. Overall, while the recent year's figure has shown a slight decline, the company's ability to utilize its total capital efficiently has generally been strong over the past five years.
Peer comparison
Aug 31, 2023