Box Inc (BOX)

Return on total capital

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	79,858	82,862	70,830	60,425	50,753	49,299	51,286	44,551	36,840	16,964	-7,489	-16,739	-37,963	-40,279	-31,806	-33,206	-36,846	-63,233	-100,505	-128,579
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	197,276	13,795	53,746	94,711	61,033	-48,864	-45,943	-21,621	-33,861	-78,160	-90,598	4,386	92,793	220,016	335,907	124,813	151,065	87,562	59,592	40,848
Return on total capital		40.48%	600.67%	131.79%	63.80%	83.16%	—	—	—	—	—	—	-381.65%	-40.91%	-18.31%	-9.47%	-26.60%	-24.39%	-72.22%	-168.66%	-314.77%

January 31, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $79,858K ÷ ($—K + $197,276K)
= 40.48%

Based on the data provided, the return on total capital for Box Inc has shown significant variability over the periods observed. The return on total capital was negative for the majority of the historical periods, with the ratio ranging from -381.65% on April 30, 2022, to -9.47% on July 31, 2021. These negative values indicate that the company's return on total capital was insufficient to cover its capital costs during these periods.

However, there has been a notable improvement in Box Inc's return on total capital in recent quarters. The ratio turned positive starting from January 31, 2024, and increased consistently in the following periods, reaching its peak at 600.67% on October 31, 2024. This positive trend suggests that the company has been able to generate higher returns relative to its total capital investment, indicating improved profitability and efficiency in capital utilization.

It is important to note that a return on total capital above 100% may indicate a potential anomaly or calculation error, as it implies an exceptionally high return relative to the capital employed. Therefore, further investigation into the financial data and calculation methodology is advisable to ensure the accuracy and reliability of the reported return on total capital for Box Inc.