CSW Industrials, Inc. (CSW)
Return on total capital
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 180,386 | 154,382 | 139,177 | 96,690 | 53,251 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,072,250 | 615,723 | 525,675 | 469,086 | 412,013 |
| Return on total capital | 16.82% | 25.07% | 26.48% | 20.61% | 12.92% |
March 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $180,386K ÷ ($—K + $1,072,250K)
= 16.82%
The return on total capital for CSW Industrials, Inc. exhibits notable fluctuations over the observed period. As of March 31, 2021, the return stood at 12.92%, reflecting a modest level of profitability relative to the company's total capital base at that time. This metric increased significantly by March 31, 2022, reaching 20.61%, indicating improved efficiency in generating earnings from the company's invested capital. The upward trend continued into March 31, 2023, with the return reaching 26.48%, suggesting a period of strong operational performance and potentially enhanced margins or capital utilization.
However, the following year, the return on total capital declined slightly to 25.07% as of March 31, 2024, signaling a moderate reduction in profitability but still remaining at a high level historically. By March 31, 2025, the return declined further to 16.82%, which represents a significant decrease compared to the prior year, potentially reflecting increased capital deployment, margin pressures, or changes in operational efficiency.
Overall, the historical data indicates that CSW Industrials, Inc. experienced a period of robust returns between 2021 and 2023, reaching peak profitability in 2023. The subsequent decrease suggests a normalization or challenges affecting profit generation from total capital. Continuous monitoring of related operational factors and capital management strategies would be necessary to better understand the drivers behind these fluctuations.