Commercial Metals Company (CMC)

Return on total capital

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	683,564	1,162,090	1,565,860	585,922	433,816
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	4,299,780	4,120,870	3,286,200	2,294,880	1,889,200
Return on total capital		15.90%	28.20%	47.65%	25.53%	22.96%

August 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $683,564K ÷ ($—K + $4,299,780K)
= 15.90%

Commercial Metals Company's return on total capital has shown a fluctuating trend over the past five years. The return on total capital was highest in August 2022 at 47.65%, indicating that the company generated significant returns relative to the total capital employed during that period.

However, the return on total capital has since declined in the subsequent years, with the latest reported figure of 15.90% in August 2024. This suggests a significant drop in the company's ability to generate returns on its total capital in the most recent period.

Overall, the trend in return on total capital for Commercial Metals Company indicates variations in the company's efficiency in utilizing its total capital to generate profits over the past five years. Further analysis and examination of the company's financial performance and operational strategies may be necessary to understand the factors contributing to these fluctuations.