Ethan Allen Interiors Inc (ETD)
Return on total capital
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 77,991 | 87,053 | 100,516 | 115,897 | 137,196 | 890,616 | 894,481 | 893,704 | 881,414 | 120,367 | 106,701 | 92,964 | 77,285 | 40,776 | 21,035 | 7,684 | 14,644 | 22,442 | 33,865 | 40,789 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 50,000 | 50,000 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 482,980 | 477,391 | 472,926 | 462,584 | 471,028 | 453,203 | 437,085 | 415,772 | 407,349 | 383,976 | 365,769 | 345,070 | 351,443 | 356,602 | 347,579 | 332,941 | 328,065 | 339,224 | 362,788 | 370,447 |
| Return on total capital | 16.15% | 18.24% | 21.25% | 25.05% | 29.13% | 196.52% | 204.65% | 214.95% | 216.38% | 31.35% | 29.17% | 26.94% | 21.99% | 11.43% | 6.05% | 2.01% | 3.87% | 6.62% | 9.33% | 11.01% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $77,991K ÷ ($—K + $482,980K)
= 16.15%
Ethan Allen Interiors Inc's return on total capital has shown fluctuations over the past several quarters. The return on total capital was relatively stable in the range of 11% to 31% from December 31, 2019, to March 31, 2023. However, there was a significant spike in the return on total capital in the first quarter of 2023, reaching exceptionally high levels of 196.52% and 204.65%, before gradually declining in the following quarters.
The return on total capital then decreased to more moderate levels between 16.15% and 25.05% from June 30, 2023, to Dec 31, 2024. This variability in the return on total capital could indicate fluctuations in the company's profitability and efficiency in utilizing its capital resources.
Further analysis would be needed to determine the underlying factors driving these fluctuations in the return on total capital and to assess the company's overall financial performance and capital efficiency.