Commercial Metals Company (CMC)

Return on total capital

		Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	683,564	783,839	930,363	1,047,001	1,162,094	1,268,778	1,368,282	1,644,604	1,565,856	1,417,421	1,179,517	759,079	586,228	481,892	405,291	406,503	433,816	454,375	476,436	424,391
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	4,299,780	4,258,810	4,222,450	4,229,740	4,120,870	4,023,380	3,782,960	3,584,000	3,286,200	3,141,940	2,869,720	2,485,960	2,294,880	2,156,370	2,009,260	1,934,690	1,889,200	1,800,450	1,757,840	1,701,500
Return on total capital		15.90%	18.41%	22.03%	24.75%	28.20%	31.54%	36.17%	45.89%	47.65%	45.11%	41.10%	30.53%	25.55%	22.35%	20.17%	21.01%	22.96%	25.24%	27.10%	24.94%

August 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (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 20 quarters. The ratio has ranged from a low of 15.90% to a high of 47.65% during this period. The return on total capital peaked at 47.65% in August 2022 but gradually decreased to 15.90% by August 2024.

Overall, the company's return on total capital has generally been above 20%, indicating efficient use of both equity and debt capital in generating profits. However, there are fluctuations in performance over time, suggesting changes in the company's operational efficiency or capital structure.

It is essential for stakeholders to closely monitor these fluctuations and trends in return on total capital to assess the company's ability to generate returns relative to the capital invested.