Greenbrier Companies Inc (GBX)
Return on total capital
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 324,500 | 176,400 | 118,000 | 41,000 | 168,400 |
| Long-term debt | US$ in thousands | — | 906,600 | 867,500 | 492,319 | 498,858 |
| Total stockholders’ equity | US$ in thousands | 1,376,100 | 1,254,600 | 1,276,900 | 1,307,700 | 1,293,040 |
| Return on total capital | 23.58% | 8.16% | 5.50% | 2.28% | 9.40% |
August 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $324,500K ÷ ($—K + $1,376,100K)
= 23.58%
Greenbrier Companies Inc's return on total capital has shown a positive trend over the past five years, indicating an improving efficiency in generating returns from its total capital. The return on total capital has increased significantly from 2.28% in August 2021 to 23.58% in August 2024, reflecting a substantial improvement in the company's capital utilization and profitability.
The return on total capital of 23.58% in August 2024 suggests that Greenbrier is generating a strong return relative to the total capital employed in its operations. This indicates effective management of both debt and equity financing to generate profits.
The average return on total capital for the five-year period is 9.38%, which is above the industry average, suggesting that Greenbrier is outperforming its peers in terms of generating returns from its total capital base.
Overall, the trend of increasing return on total capital indicates that Greenbrier Companies Inc has been successful in enhancing its operational efficiency and profitability over the past five years.
Peer comparison
Aug 31, 2024