Energizer Holdings Inc (ENR)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 209,500 | 344,400 | -147,100 | 316,000 | 122,600 |
| Long-term debt | US$ in thousands | 3,193,000 | 3,332,100 | 3,499,400 | 3,333,400 | 3,306,900 |
| Total stockholders’ equity | US$ in thousands | 135,800 | 210,700 | 130,600 | 355,700 | 309,100 |
| Return on total capital | 6.29% | 9.72% | -4.05% | 8.57% | 3.39% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $209,500K ÷ ($3,193,000K + $135,800K)
= 6.29%
Energizer Holdings Inc's return on total capital has shown variability over the past five years. In 2024, the return on total capital stood at 6.29%, representing a decrease from the previous year. The decline in the return may indicate challenges in efficiently utilizing the company's total capital to generate profit.
In 2023, the return on total capital was 9.72%, reflecting a strong performance compared to the following years. This indicates that the company was able to generate a higher return relative to the total capital invested, suggesting effective capital utilization.
However, in 2022, Energizer Holdings Inc experienced a negative return on total capital of -4.05%, signaling that the company did not generate sufficient profits to cover the total capital employed. This could be a red flag for investors and stakeholders as it points to potential inefficiencies in the utilization of capital.
The return on total capital improved in 2021 to 8.57%, indicating a positive trend in capital efficiency compared to the previous year. This may suggest that the company made strategic decisions to enhance profitability relative to the total capital invested.
In 2020, Energizer Holdings Inc had a return on total capital of 3.39%, showing a moderate performance in capital utilization. It is crucial for the company to continue monitoring and improving its return on total capital to ensure optimal utilization of resources and sustained profitability.
Peer comparison
Sep 30, 2024