Helen of Troy Ltd (HELE)
Return on total capital
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 262,107 | 212,040 | 272,810 | 282,047 | 178,645 |
| Long-term debt | US$ in thousands | 659,421 | 928,348 | 811,332 | 341,746 | 337,421 |
| Total stockholders’ equity | US$ in thousands | 1,637,440 | 1,488,810 | 1,327,340 | 1,239,350 | 1,161,720 |
| Return on total capital | 11.41% | 8.77% | 12.76% | 17.84% | 11.92% |
February 29, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $262,107K ÷ ($659,421K + $1,637,440K)
= 11.41%
Helen of Troy Ltd's return on total capital has shown variability over the past five years. The return on total capital was 11.41% as of February 29, 2024, representing an increase from the previous year. This improvement follows a decrease in the return on total capital in the prior year, where it stood at 8.77% as of February 28, 2023.
Comparing these figures to the returns in the two preceding years, we observe that the return on total capital was 12.76% as of February 28, 2022, and 17.84% as of February 28, 2021. The highest return on total capital was recorded in 2021, indicating a decline in the company's utilization of total capital to generate profits.
In the earliest year in consideration, the return on total capital was 11.92% as of February 29, 2020, showing a similar level to the most recent year but lower than the peak level achieved in 2021. Overall, Helen of Troy Ltd's return on total capital has fluctuated over the five-year period, demonstrating the company's varying efficiency in generating returns from its total capital investment.