CSW Industrials, Inc. (CSW)
Return on total capital
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 180,264 | 180,577 | 181,095 | 170,653 | 163,489 | 153,605 | 149,363 | 152,585 | 144,023 | 139,191 | 127,583 | 117,229 | 107,803 | 95,097 | 78,457 | 69,961 | 65,850 | 53,494 | 49,284 | 56,247 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,109,830 | 1,072,250 | 1,044,020 | 1,030,170 | 650,158 | 615,723 | 589,072 | 586,927 | 560,094 | 525,675 | 498,768 | 483,033 | 466,720 | 469,086 | 458,738 | 448,947 | 431,120 | 412,013 | 402,717 | 302,041 |
| Return on total capital | 16.24% | 16.84% | 17.35% | 16.57% | 25.15% | 24.95% | 25.36% | 26.00% | 25.71% | 26.48% | 25.58% | 24.27% | 23.10% | 20.27% | 17.10% | 15.58% | 15.27% | 12.98% | 12.24% | 18.62% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $180,264K ÷ ($—K + $1,109,830K)
= 16.24%
The analysis of CSW Industrials, Inc.'s return on total capital over the specified period reveals notable fluctuations and trends. Starting with a high of approximately 18.62% as of September 30, 2020, the metric exhibits a decreasing pattern through the end of 2020, reaching 12.24% by December 31, 2020. This decline continues into the first quarter of 2021, with a modest rebound to 12.98% by March 31, 2021, followed by steady increases thereafter.
From mid-2021 onward, there is a marked upward trend, with the return increasing to over 15% by September 30, 2021. This upward momentum persists, culminating in a peak of approximately 26.48% as of March 31, 2023. During this period, the return on total capital demonstrates resilience and growth, reflecting improved efficiency in generating earnings relative to the capital employed.
Post-March 2023, the metric stabilizes around the mid-20% range, with slight fluctuations, indicating a period of relative steadiness in performance. Notably, in the most recent data points, there is a decline from around 26.00% as of September 30, 2023, to approximately 16.57% by September 30, 2024, followed by a modest recovery to 17.35% by December 31, 2024. The subsequent quarters show a gradual decrease, reaching 16.24% as of June 30, 2025.
In summary, CSW Industrials, Inc. experienced an initial decline in return on total capital during the late 2020 period, followed by a sustained upward trajectory peaking in early 2023. The subsequent period reflects some volatility and a slight downward trend, which may indicate changing operational efficiencies, capital structure adjustments, or external market influences affecting the company's ability to generate returns on its total capital base.