Cavco Industries Inc (CVCO)
Return on total capital
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 200,741 | 216,335 | 247,818 | 288,896 | 307,386 | 317,480 | 300,196 | 256,385 | 212,648 | 173,658 | 140,777 | 111,416 | 97,650 | 81,580 | 80,735 | 88,502 | 94,474 | 107,311 | 99,959 | 92,860 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | 10,335 | 10,847 | 11,933 | 12,307 | 12,705 | 14,125 | 14,359 | 14,199 |
| Total stockholders’ equity | US$ in thousands | 1,033,410 | 1,008,700 | 1,019,260 | 1,022,830 | 976,286 | 955,500 | 928,932 | 851,562 | 830,455 | 806,212 | 733,116 | 699,067 | 683,640 | 661,741 | 640,688 | 624,007 | 607,586 | 595,260 | 573,004 | 550,337 |
| Return on total capital | 19.43% | 21.45% | 24.31% | 28.24% | 31.49% | 33.23% | 32.32% | 30.11% | 25.61% | 21.54% | 19.20% | 15.94% | 14.07% | 12.13% | 12.37% | 13.91% | 15.23% | 17.61% | 17.02% | 16.45% |
March 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $200,741K ÷ ($—K + $1,033,410K)
= 19.43%
Over the past few quarters, Cavco Industries Inc's return on total capital has exhibited a generally positive trend, indicating the company's ability to generate profits from its capital investments. The return on total capital has fluctuated between 12.13% to 33.23% from December 31, 2020, to March 31, 2024.
The peak return of 33.23% recorded in March 31, 2023, showcases the company's efficiency in utilizing its total capital to generate earnings. However, there was a slight decline in return on total capital in the subsequent quarters, which could be attributed to various factors such as changing market conditions or operational challenges.
Overall, the average return on total capital over this period stands at around 21.72%, reflecting a strong performance in terms of capital utilization and profitability. Investors and stakeholders may view this metric favorably as it indicates the company's ability to generate returns on the total capital employed in its operations.