Concentrix Corporation (CNXC)

Return on total capital

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	661,327	640,192	572,397
Long-term debt	US$ in thousands	4,939,710	2,224,290	802,017
Total stockholders’ equity	US$ in thousands	4,143,290	2,695,900	2,620,260
Return on total capital		7.28%	13.01%	16.73%

November 30, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $661,327K ÷ ($4,939,710K + $4,143,290K)
= 7.28%

To analyze Concentrix Corp.'s return on total capital over the past five years, we can observe a fluctuation in the return on total capital ratio. In 2023, the return on total capital decreased to 7.28% from 13.01% in 2022, indicating a decline in the company's ability to generate returns from its total capital. This may raise concerns about the company's operational efficiency and overall profitability. Comparing this to 2021 where the return was 16.73%, it suggests a significant decrease in the company's ability to effectively utilize its total capital in generating profits. However, the return on total capital in 2020 and 2019 was 8.96% and 8.53% respectively, indicating a relatively stable performance during those years. This trend may reflect changes in the company's capital structure, profitability, or the effectiveness of its capital investment strategies. Further analysis would be necessary to determine the specific factors driving these fluctuations and their potential impact on Concentrix Corp.'s financial performance and sustainability.