DXC Technology Co (DXC)
Return on total capital
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 888,000 | 407,000 | -685,000 | 1,345,000 | 1,015,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,229,000 | 2,811,000 | 3,497,000 | 5,052,000 | 5,308,000 |
| Return on total capital | 27.50% | 14.48% | -19.59% | 26.62% | 19.12% |
March 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $888,000K ÷ ($—K + $3,229,000K)
= 27.50%
Based on the provided data, DXC Technology Co's return on total capital has fluctuated significantly over the years. In March 2021, the company had a return on total capital of 19.12%, indicating it generated a positive return relative to its total capital employed. The following year, in March 2022, the return on total capital improved to 26.62%, showing an increase in efficiency and profitability.
However, in March 2023, DXC Technology Co experienced a notable decline in its return on total capital, reporting a negative figure of -19.59%. This negative return suggests that the company may have faced challenges in generating profits relative to the capital invested during that period.
Subsequently, in March 2024, the return on total capital improved to 14.48%, indicating a recovery in the company's capital efficiency. By March 2025, the return on total capital further increased to 27.50%, signaling a strong performance in utilizing its total capital to generate returns for its shareholders.
Overall, DXC Technology Co's return on total capital has shown variability over the years, with significant improvements in some periods and challenges in others. Investors and analysts may continue to monitor this metric closely to assess the company's ability to generate returns on the capital it deploys in its operations.
Peer comparison
Mar 31, 2025