Ethan Allen Interiors Inc (ETD)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 92,846 | 141,225 | 138,321 | 76,911 | 14,889 |
| Long-term debt | US$ in thousands | — | — | — | — | 50,000 |
| Total stockholders’ equity | US$ in thousands | 482,980 | 471,028 | 407,349 | 351,443 | 328,065 |
| Return on total capital | 19.22% | 29.98% | 33.96% | 21.88% | 3.94% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $92,846K ÷ ($—K + $482,980K)
= 19.22%
Ethan Allen Interiors Inc's return on total capital has fluctuated over the past five years, with the trend indicating some variability in the company's ability to generate returns from its capital investments.
The return on total capital was highest in June 30, 2022, at 33.96%, indicating that the company was able to efficiently utilize its total capital to generate profits during that period. This could be a result of effective capital allocation and operational efficiency.
In contrast, the return on total capital was lowest in June 30, 2020, at 3.94%, suggesting that the company faced challenges in generating returns from its capital investments during that period. This could be indicative of operational inefficiencies or poor capital allocation decisions.
The return on total capital for June 30, 2024, at 19.22%, shows a decrease compared to the previous year. While still a healthy return, this decline may warrant further investigation into the factors contributing to the drop in returns.
Overall, the fluctuations in Ethan Allen Interiors Inc's return on total capital indicate the importance of closely monitoring and analyzing the company's capital utilization and profitability metrics to ensure sustainable and consistent returns for its investors.
Peer comparison
Jun 30, 2024