Box Inc (BOX)

Return on total capital

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	50,753	49,299	51,286	44,551	36,840	16,964	-7,489	-16,739	-27,626	-30,738	-22,265	-23,665	-37,642	-62,945	-99,564	-128,331	-139,472	-132,585	-132,816	-133,758
Long-term debt	US$ in thousands	370,822	370,322	369,823	369,825	369,351	368,878	368,406	367,934	367,463	366,993	366,530	366,061	297,614	50,000	70,000	70,000	40,000	40,000	40,000	40,000
Total stockholders’ equity	US$ in thousands	-431,062	-540,415	-536,964	-512,085	-523,851	-567,594	-579,504	-483,965	-395,087	-273,150	-152,987	124,813	151,065	87,562	59,592	40,848	22,357	20,775	22,266	30,538
Return on total capital		—	—	—	—	—	—	—	—	—	-32.75%	-10.43%	-4.82%	-8.39%	-45.76%	-76.83%	-115.77%	-223.67%	-218.16%	-213.30%	-189.63%

January 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $50,753K ÷ ($370,822K + $-431,062K)
= —

Box Inc's return on total capital has shown a fluctuating trend over the past several quarters. The company's return on total capital was negative in all reported periods previous to the most recent quarter. This indicates that the company has been unable to generate sufficient returns relative to the total capital employed in its operations during those periods.

In particular, the return on total capital deteriorated significantly from January 2020 to January 2021, reaching a low of -223.67% in January 2020, indicating a substantial loss relative to the capital invested. However, there was a slight improvement in the subsequent quarters, with the return on total capital moving towards a less negative figure.

It is important for Box Inc to focus on improving its operational efficiency and capital allocation strategies to enhance its return on total capital in order to generate value for its stakeholders and investors.