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.
Peer comparison
Mar 31, 2025