Greif Bros Corporation (GEF)

Return on total capital

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	518,000	605,500	646,500	696,600	705,600	621,200	609,300	576,700	587,200	585,200	535,500	424,300	295,700	304,900	328,800	392,500	411,100	399,100	386,700	375,100
Long-term debt	US$ in thousands	2,185,300	2,121,400	2,081,400	2,206,100	2,143,900	1,839,300	1,986,100	1,991,300	2,139,100	2,054,800	2,089,700	2,154,600	2,359,600	2,335,500	2,535,300	2,595,100	2,719,000	2,659,000	2,786,000	2,851,800
Total stockholders’ equity	US$ in thousands	1,992,500	1,947,900	1,948,300	1,879,800	1,845,400	1,761,300	1,701,100	1,686,400	1,493,300	1,514,300	1,448,900	1,374,200	1,205,300	1,152,200	1,141,300	1,083,200	1,163,800	1,133,100	1,120,600	1,086,600
Return on total capital		12.40%	14.88%	16.04%	17.05%	17.69%	17.25%	16.52%	15.68%	16.17%	16.40%	15.13%	12.02%	8.29%	8.74%	8.94%	10.67%	10.59%	10.52%	9.90%	9.52%

January 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $518,000K ÷ ($2,185,300K + $1,992,500K)
= 12.40%

The return on total capital for Greif Inc has shown a decreasing trend over the past eight quarters, starting at 19.30% in Q4 2022 and declining to 13.04% in Q1 2024. This indicates that the company's ability to generate returns from its total capital has been gradually weakening. Despite some fluctuations, the general pattern suggests a downward trajectory in the efficiency of capital utilization. Further analysis and investigation into the factors influencing this trend would be necessary to understand the underlying causes and implications for the company's financial performance and strategy.