Box Inc (BOX)

Return on total capital

Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021
Earnings before interest and tax (EBIT) US$ in thousands 79,085 50,753 36,840 -30,640 -39,764
Long-term debt US$ in thousands — — — — —
Total stockholders’ equity US$ in thousands 197,276 61,033 -33,861 92,793 151,065
Return on total capital 40.09% 83.16% — -33.02% -26.32%

January 31, 2025 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $79,085K ÷ ($—K + $197,276K)
= 40.09%

Based on the data provided, the return on total capital for Box Inc fluctuated significantly over the past few years.

In January 31, 2021, the return on total capital was at -26.32%, indicating that the company had a negative return on the capital invested during that period. This negative return suggests that Box Inc may not have utilized its invested capital effectively to generate profits.

The return on total capital worsened in January 31, 2022, dropping to -33.02%. This downward trend indicates a further decrease in the company's ability to generate returns on the total capital employed.

Interestingly, the return on total capital data for January 31, 2023 is not available, so it is not possible to assess the company's performance for that specific period.

The return on total capital experienced a significant improvement by January 31, 2024, with a positive return of 83.16%. This sharp increase suggests that Box Inc effectively utilized its total capital to generate substantial returns, indicating a potential improvement in the company's financial performance.

The positive trend continued into January 31, 2025, with a return on total capital of 40.09%. This indicates that Box Inc maintained its ability to generate returns on the total capital invested, albeit at a slightly lower rate compared to the previous year.

Overall, the return on total capital for Box Inc has shown notable fluctuations, ranging from negative figures to significant positive returns, reflecting varying levels of capital efficiency and profitability over the analyzed period.