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.
Peer comparison
Aug 31, 2024