Haynes International Inc (HAYN)
Return on total capital
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 59,496 | 60,095 | -8,597 | -6,166 | 14,356 |
| Long-term debt | US$ in thousands | 114,843 | 74,721 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 434,324 | 375,488 | 343,321 | 301,501 | 296,275 |
| Return on total capital | 10.83% | 13.35% | -2.50% | -2.05% | 4.85% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $59,496K ÷ ($114,843K + $434,324K)
= 10.83%
Haynes International Inc.'s return on total capital has varied significantly over the past five years, ranging from a negative figure in 2021 to a high of 14.45% in 2022. The return on total capital for the most recent period, as of September 30, 2023, stands at 10.34%, indicating a decrease compared to the prior year.
The fluctuations in return on total capital suggest varying degrees of efficiency in utilizing the total capital employed by the company. The negative return in 2021 may reflect challenges in generating profits in relation to the capital invested. However, the subsequent improvement in 2022 followed by a slight decline in 2023 suggests potential volatility in the company's ability to generate returns on the total capital over the years.
It would be important for stakeholders to further investigate the drivers behind these fluctuations, as well as the company's strategies to enhance the efficiency of its capital allocation for sustaining or improving the return on total capital in the future.
Peer comparison
Sep 30, 2023