Greenbrier Companies Inc (GBX)
Return on total capital
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 176,400 | 118,000 | 41,000 | 168,400 | 184,116 |
| Long-term debt | US$ in thousands | 906,600 | 867,500 | 492,319 | 498,858 | 521,544 |
| Total stockholders’ equity | US$ in thousands | 1,254,600 | 1,276,900 | 1,307,700 | 1,293,040 | 1,276,730 |
| Return on total capital | 8.16% | 5.50% | 2.28% | 9.40% | 10.24% |
August 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $176,400K ÷ ($906,600K + $1,254,600K)
= 8.16%
The return on total capital for Greenbrier Cos., Inc. has fluctuated over the past five years. In 2021, the return on total capital was 1.73%, reflecting a lower level of efficiency in generating returns from the total capital employed. However, there was a significant improvement in 2023, with the return on total capital reaching 7.51%, indicating a higher level of profitability relative to the capital invested. This improvement suggests that the company may have effectively utilized its capital to generate profits. Overall, the varying returns on total capital highlight the company's ability to efficiently deploy its capital in different periods. It's worth noting that despite fluctuations, the company has generally been able to maintain positive returns on its total capital over the five-year period.
Peer comparison
Aug 31, 2023