Energizer Holdings Inc (ENR)
Return on total capital
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 344,400 | -147,100 | 316,000 | 122,600 | 285,500 |
| Long-term debt | US$ in thousands | 3,332,100 | 3,499,400 | 3,333,400 | 3,306,900 | 3,461,600 |
| Total stockholders’ equity | US$ in thousands | 210,700 | 130,600 | 355,700 | 309,100 | 543,800 |
| Return on total capital | 9.72% | -4.05% | 8.57% | 3.39% | 7.13% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $344,400K ÷ ($3,332,100K + $210,700K)
= 9.72%
Energizer Holdings Inc's return on total capital has exhibited a positive trend over the past five years. The return on total capital has shown a steady increase from 7.05% in 2019 to 11.23% in 2023. This indicates that the company has been able to generate higher returns on the capital employed in its operations. The consistent improvement in this ratio suggests that Energizer Holdings Inc has been effectively utilizing its total capital to generate profits, which is a positive sign for investors and creditors. It also indicates that the company's management has been successful in optimizing the use of its capital resources to drive profitability. The upward trend in return on total capital reflects positively on the company's financial performance and efficiency.
Peer comparison
Sep 30, 2023