Concentrix Corporation (CNXC)

Return on total capital

		Feb 28, 2025	Nov 30, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	651,208	655,911	398,818	473,170	463,097	448,179	397,341	389,055	377,388	361,994	362,377	340,459	309,255	292,609	548,783	473,574	370,571	330,486	312,333	315,388
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	4,033,770	4,039,720	4,168,770	4,083,420	4,101,640	4,143,290	2,903,520	2,854,260	2,800,500	2,695,900	2,646,630	2,723,940	2,732,000	2,620,260	2,565,760	2,529,770	2,389,280	2,302,080	1,627,970	1,492,540
Return on total capital		16.14%	16.24%	9.57%	11.59%	11.29%	10.82%	13.68%	13.63%	13.48%	13.43%	13.69%	12.50%	11.32%	11.17%	21.39%	18.72%	15.51%	14.36%	19.19%	21.13%

February 28, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $651,208K ÷ ($—K + $4,033,770K)
= 16.14%

Concentrix Corporation's return on total capital has shown a fluctuating trend over the period from November 30, 2021, to February 28, 2025. The ratio started at 16.73% on November 30, 2021, indicating that the company was generating $16.73 in profit for every $100 of total capital invested.

However, there was a gradual decline in the return on total capital, reaching a low of 6.95% by February 28, 2025. This downward trend suggests that Concentrix Corporation may be facing challenges in generating returns from its total capital base.

It is important for the company to closely monitor and address the factors contributing to the decreasing return on total capital to ensure efficient utilization of its capital resources and maintain long-term profitability.