Calavo Growers Inc (CVGW)
Return on total capital
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -1,045 | 93 | 1,778 | -3,489 | -169 | -1,313 | -21,081 | -24,265 | -12,543 | -273 | 27,403 | 7,703 | -8,245 | -17,040 | 3,627 | 30,586 | 57,013 | 64,688 | 34,498 | 43,542 |
| Long-term debt | US$ in thousands | 44,890 | 7,300 | 39,823 | — | — | 6,000 | — | — | — | 7,100 | — | — | — | 7,100 | — | — | — | 6,200 | — | — |
| Total stockholders’ equity | US$ in thousands | 201,131 | 208,837 | 217,695 | 211,868 | 215,487 | 222,356 | 224,656 | 222,601 | 222,031 | 225,515 | 257,882 | 270,357 | 260,294 | 254,530 | 267,970 | 282,754 | 285,386 | 284,181 | 297,440 | 285,953 |
| Return on total capital | -0.42% | 0.04% | 0.69% | -1.65% | -0.08% | -0.57% | -9.38% | -10.90% | -5.65% | -0.12% | 10.63% | 2.85% | -3.17% | -6.51% | 1.35% | 10.82% | 19.98% | 22.28% | 11.60% | 15.23% |
January 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-1,045K ÷ ($44,890K + $201,131K)
= -0.42%
Based on the provided data, the return on total capital for Calavo Growers Inc has been fluctuating over the past several quarters. The return on total capital measures the efficiency of the company in generating returns from all of its capital, including both debt and equity.
The return on total capital has shown significant variability, ranging from negative values such as -10.90% in April 2022 and -9.38% in July 2022 to high positive values like 22.28% in July 2019 and 19.98% in October 2019. These fluctuations suggest that the company's performance in utilizing its total capital has experienced both periods of strong profitability and challenges.
It is important for investors and stakeholders to closely monitor the return on total capital trend over time to assess the company's ability to effectively deploy its capital and generate sustainable returns. Additionally, analyzing the reasons behind the fluctuations in the return on total capital can provide insights into the company's operational efficiency, profitability, and overall financial health.