Commercial Metals Company (CMC)
Return on total capital
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,162,090 | 1,565,860 | 585,922 | 433,816 | 339,147 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,120,870 | 3,286,200 | 2,294,880 | 1,889,200 | 1,623,860 |
| Return on total capital | 28.20% | 47.65% | 25.53% | 22.96% | 20.89% |
August 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,162,090K ÷ ($—K + $4,120,870K)
= 28.20%
The return on total capital for Commercial Metals Co. has shown an increasing trend over the last five years. In 2019, the return on total capital was 11.86%, which has steadily increased to 22.15% in 2023. This indicates an improvement in the company's ability to generate profit relative to the total capital employed in its operations. The company's performance in utilizing its capital has been consistently strong, with the return on total capital surpassing 20% in the most recent year, reflecting efficient management of both debt and equity capital to generate returns for its stakeholders. Overall, the increasing trend in return on total capital suggests that Commercial Metals Co. has been effectively deploying its capital to generate profits and create value for its investors.
Peer comparison
Aug 31, 2023