Box Inc (BOX)
Return on total capital
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 50,753 | 36,840 | -27,626 | -37,642 | -139,472 |
| Long-term debt | US$ in thousands | 370,822 | 369,351 | 367,463 | 297,614 | 40,000 |
| Total stockholders’ equity | US$ in thousands | -431,062 | -523,851 | -395,087 | 151,065 | 22,357 |
| Return on total capital | — | — | — | -8.39% | -223.67% |
January 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $50,753K ÷ ($370,822K + $-431,062K)
= —
Based on the data provided, Box Inc's return on total capital for the financial years ending January 31, 2020, and January 31, 2021, was -223.67% and -8.39% respectively. The return on total capital for the years ending January 31, 2022, January 31, 2023, and January 31, 2024, is not available in the table.
A negative return on total capital indicates that the company is not generating sufficient returns from its invested capital. The significant negative returns in the past suggest that Box Inc may have struggled to efficiently utilize its capital to generate profits for its shareholders. This could be a cause for concern as it may indicate operational inefficiencies, poor investment decisions, or challenges in the company's core business.
Analyzing return on total capital over multiple periods can provide insights into the company's financial performance and management effectiveness in deploying its capital. Further analysis of the company's financial statements, operating performance, and competitive positioning may be necessary to understand the factors contributing to the negative returns on total capital and to assess the company's overall financial health and strategic direction.
Peer comparison
Jan 31, 2024