Ethan Allen Interiors Inc (ETD)
Return on total capital
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 52,545 | 74,592 | 76,567 | 77,834 | 77,914 | 86,498 | 100,245 | 115,665 | 133,476 | 145,170 | 149,505 | 148,924 | 138,885 | 121,644 | 108,571 | 95,646 | 80,335 | 42,804 | 22,683 | 8,731 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 482,269 | 479,242 | 478,816 | 474,725 | 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 |
| Return on total capital | 10.90% | 15.56% | 15.99% | 16.40% | 16.13% | 18.12% | 21.20% | 25.00% | 28.34% | 32.03% | 34.21% | 35.82% | 34.09% | 31.68% | 29.68% | 27.72% | 22.86% | 12.00% | 6.53% | 2.62% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $52,545K ÷ ($—K + $482,269K)
= 10.90%
The analysis of Ethan Allen Interiors Inc.'s return on total capital (ROTC) over the period from September 2020 through June 2025 reveals a significant upward trajectory followed by a gradual decline. Initially, in September 2020, the ROTC was at 2.62%, indicating modest efficiency in generating profits from its total capital base during that period, likely reflecting the impact of the early COVID-19 pandemic.
Throughout 2021, the organization's ROTC experienced rapid growth, reaching 27.72% as of September 2021 and peaking at 29.68% in December 2021. This upward trend suggests a substantial improvement in operational efficiency and profitability relative to the total capital employed, possibly driven by strategic initiatives, product demand recovery, or favorable market conditions.
In 2022, the ROTC continued its ascent, reaching a peak of 35.82% by September, which signifies a period of optimal operational leverage and capital utilization. The slightly reduced value in December 2022 at 34.21% indicates minor fluctuations but maintains a high level of efficiency.
Starting in 2023, a downward trend becomes apparent. The ROTC declined to 32.03% in March and further to 28.34% in June. This decline persisted throughout 2024 and 2025, with values diminishing to 16.13% in June 2024, 16.40% in September 2024, and reaching approximately 10.90% by June 2025.
The overall pattern highlights a sharp initial increase in return on total capital from late 2020 through 2021 and early 2022, reaching peak operational efficiency during this period. The subsequent sustained decline indicates decreasing efficiency or profitability relative to the company's total capital base, possibly due to external market pressures, increased capital investments without corresponding proportional returns, or strategic shifts impacting operational performance.
This trend underscores the importance of monitoring internal efficiencies, market conditions, and capital management strategies, as the declining ROTC in recent periods suggests challenges in maintaining the previous levels of capital productivity.
Peer comparison
Jun 30, 2025