Carpenter Technology Corporation (CRS)

Return on total capital

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	323,100	126,600	-18,200	-265,200	25,900
Long-term debt	US$ in thousands	694,200	693,000	691,800	694,500	551,800
Total stockholders’ equity	US$ in thousands	1,628,800	1,396,100	1,330,500	1,392,300	1,445,700
Return on total capital		13.91%	6.06%	-0.90%	-12.71%	1.30%

June 30, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $323,100K ÷ ($694,200K + $1,628,800K)
= 13.91%

The return on total capital for Carpenter Technology Corporation has shown a positive trend over the past five years, with a notable improvement from -12.71% in 2021 to 13.91% in 2024. This indicates that the company has been able to generate higher returns relative to the total capital employed in its operations. The significant increase in 2024 suggests that Carpenter Technology Corporation has become more efficient in utilizing its capital to generate profits. The steady improvement in this ratio reflects positively on the company's operational efficiency and profitability performance over the years.