DXC Technology Co (DXC)
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 | 412,000 | -687,000 | 1,327,000 | 1,012,000 | -4,856,000 |
| Long-term debt | US$ in thousands | 3,818,000 | 3,900,000 | 4,065,000 | 4,345,000 | 8,672,000 |
| Total stockholders’ equity | US$ in thousands | 2,811,000 | 3,497,000 | 5,052,000 | 4,973,000 | 4,785,000 |
| Return on total capital | 6.22% | -9.29% | 14.56% | 10.86% | -36.09% |
March 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $412,000K ÷ ($3,818,000K + $2,811,000K)
= 6.22%
DXC Technology Co's return on total capital has been volatile over the past five years. In FY 2024, the company achieved a return on total capital of 6.22%, marking an improvement from the negative return in the previous year. However, the return is still relatively low compared to the returns in FY 2022 and FY 2021, which were 14.56% and 10.86%, respectively.
The return on total capital in FY 2020 was significantly negative at -36.09%, indicating a substantial loss on the capital employed during that period. Overall, the company has shown variability in its ability to generate returns on its total capital over the years, with FY 2022 being the most profitable and FY 2020 being the least profitable. This fluctuation may indicate shifts in the company's operational efficiency, profitability, or capital structure during the period under review.
Peer comparison
Mar 31, 2024