Gen Digital Inc. (GEN)
Return on total capital
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,122,000 | 1,227,000 | 1,005,000 | 896,000 | 355,000 |
| Long-term debt | US$ in thousands | 8,429,000 | 9,529,000 | 2,736,000 | 3,288,000 | 3,465,000 |
| Total stockholders’ equity | US$ in thousands | 2,197,000 | 2,200,000 | -93,000 | -500,000 | 10,000 |
| Return on total capital | 10.56% | 10.46% | 38.02% | 32.14% | 10.22% |
March 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,122,000K ÷ ($8,429,000K + $2,197,000K)
= 10.56%
Gen Digital Inc.'s return on total capital has shown fluctuations over the past five years. In the latest fiscal year ended on March 31, 2024, the return on total capital was 10.56%, a slight increase compared to the previous year's 10.46%. This indicates a relatively stable performance in generating returns relative to the total capital employed.
The return on total capital was significantly higher in the fiscal years ended on March 31, 2022, and March 31, 2021, at 38.02% and 32.14% respectively. This suggests that in those years, the company was able to efficiently utilize its total capital to generate higher returns. However, the return on total capital dropped to 10.22% in the fiscal year ended on March 31, 2020, showcasing a comparatively lower return on the total capital employed.
Overall, the trend in Gen Digital Inc.'s return on total capital indicates variability in the efficiency of utilizing capital to generate returns, with the company experiencing both peaks and troughs in performance over the past five years. Further analysis of the underlying factors driving these fluctuations would be necessary to provide a more in-depth assessment of the company's operational and financial performance.
Peer comparison
Mar 31, 2024