Cavco Industries Inc (CVCO)
Return on total capital
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 200,741 | 307,386 | 212,648 | 97,650 | 94,474 |
| Long-term debt | US$ in thousands | — | — | — | 10,335 | 12,705 |
| Total stockholders’ equity | US$ in thousands | 1,033,410 | 976,286 | 830,455 | 683,640 | 607,586 |
| Return on total capital | 19.43% | 31.49% | 25.61% | 14.07% | 15.23% |
March 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $200,741K ÷ ($—K + $1,033,410K)
= 19.43%
Cavco Industries Inc's return on total capital has fluctuated over the past five years. The return on total capital was highest in March 2023 at 31.49% and lowest in March 2021 at 14.07%. The company's return on total capital has shown a general upward trend from 2020 to 2023, indicating improved efficiency in generating profits relative to the total capital employed. However, there was a slight decrease in the return on total capital in 2024 compared to the previous year.
Overall, Cavco Industries Inc has demonstrated varying levels of success in generating returns from its total capital over the years, with a notable improvement between 2020 and 2023. It is essential for investors and stakeholders to monitor this metric to assess the company's operational efficiency and financial performance.