Acuity Brands Inc (AYI)
Return on total capital
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 517,800 | 510,800 | 474,600 | 519,800 | 519,400 | 506,900 | 520,900 | 495,700 | 466,700 | 451,200 | 420,400 | 391,100 | 360,100 | 352,500 | 351,100 | 378,500 | 414,800 | 428,600 | 461,300 | 478,100 |
| Long-term debt | US$ in thousands | 495,900 | 495,700 | 495,600 | 495,400 | 495,300 | 495,100 | 495,000 | 494,800 | 494,700 | 494,500 | 494,300 | 494,200 | 494,000 | 495,600 | 376,800 | 385,800 | 390,800 | 347,100 | 347,500 | 347,500 |
| Total stockholders’ equity | US$ in thousands | 2,149,600 | 2,064,100 | 2,015,400 | 1,969,800 | 1,947,600 | 1,903,500 | 1,911,800 | 1,918,600 | 2,104,300 | 2,072,900 | 2,044,500 | 2,039,100 | 1,932,500 | 1,937,000 | 2,127,500 | 2,095,700 | 2,045,100 | 1,987,300 | 1,918,900 | 1,884,900 |
| Return on total capital | 19.57% | 19.95% | 18.90% | 21.09% | 21.26% | 21.13% | 21.64% | 20.54% | 17.96% | 17.57% | 16.56% | 15.44% | 14.84% | 14.49% | 14.02% | 15.25% | 17.03% | 18.36% | 20.35% | 21.42% |
February 29, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $517,800K ÷ ($495,900K + $2,149,600K)
= 19.57%
Over the past few quarters, Acuity Brands Inc has shown fluctuating return on total capital figures. The return on total capital ranged from 14.02% in August 2020 to a peak of 21.64% in August 2022. The company's return on total capital has generally been above 15% in recent quarters, indicating efficient use of both debt and equity capital to generate profits.
The three most recent data points (Feb 29, 2024 to Aug 31, 2023) show a decreasing trend in return on total capital, dropping from 19.57% to 18.90%. The recent decline may suggest that Acuity Brands Inc is facing challenges in maintaining its profitability relative to the capital invested in the business.
Overall, Acuity Brands Inc's return on total capital demonstrates a relatively strong performance over the past few years, with consistent figures above 15%. However, the recent slight decline in the ratio highlights the importance of continuous monitoring and analysis to ensure sustainable and efficient capital allocation in the future.
Peer comparison
Feb 29, 2024