Azenta Inc (AZTA)
Return on total capital
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -73,126 | 2,138,800 | 92,684 | 53,867 | 436,836 |
| Long-term debt | US$ in thousands | — | — | 49,677 | 49,588 | 50,315 |
| Total stockholders’ equity | US$ in thousands | 2,534,500 | 3,363,390 | 1,325,330 | 1,213,610 | 1,138,950 |
| Return on total capital | -2.89% | 63.59% | 6.74% | 4.26% | 36.73% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-73,126K ÷ ($—K + $2,534,500K)
= -2.89%
Sure, here's the analysis:
Azenta Inc's return on total capital has fluctuated over the past five years. In 2023, the return on total capital was -3.44%, representing a decrease from the previous year. This indicates that the company generated a negative return on the total capital employed in the business during that period.
Similarly, in 2022 and 2021, Azenta Inc also reported negative returns on total capital at -0.71% and -2.23% respectively. These consecutive years of negative returns reflect challenges in effectively utilizing the total capital invested in the business to generate profits.
However, in 2020 and 2019, the company managed to achieve positive returns on total capital at 6.32% and 4.03% respectively. This suggests that the company was more efficient in utilizing its total capital to generate profits in those years.
Overall, the fluctuating trend in return on total capital indicates volatility in the company's ability to generate profits in relation to the total capital employed, highlighting potential inefficiencies in capital allocation and operational performance.
Peer comparison
Sep 30, 2023