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.
Peer comparison
Jan 31, 2024