Helen of Troy Ltd (HELE)
Return on total capital
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 143,501 | 217,940 | 219,151 | 233,774 | 242,217 | 221,491 | 222,157 | 218,493 | 211,791 | 208,462 | 221,366 | 233,383 | 264,387 | 237,371 | 248,064 | 288,521 | 281,126 | 285,502 | 264,085 | 210,987 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,683,440 | 1,628,180 | 1,567,580 | 1,549,500 | 1,637,440 | 1,586,280 | 1,501,880 | 1,514,910 | 1,488,810 | 1,457,070 | 1,398,350 | 1,356,420 | 1,327,340 | 1,354,960 | 1,267,820 | 1,202,080 | 1,239,350 | 1,210,440 | 1,308,530 | 1,221,750 |
| Return on total capital | 8.52% | 13.39% | 13.98% | 15.09% | 14.79% | 13.96% | 14.79% | 14.42% | 14.23% | 14.31% | 15.83% | 17.21% | 19.92% | 17.52% | 19.57% | 24.00% | 22.68% | 23.59% | 20.18% | 17.27% |
February 28, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $143,501K ÷ ($—K + $1,683,440K)
= 8.52%
The return on total capital of Helen of Troy Ltd has fluctuated over the periods provided. From May 31, 2020, to August 31, 2021, there was a general increasing trend, reaching a peak of 24.00% on May 31, 2021. However, the ratio started to decline from August 31, 2021, to February 28, 2025, where it dropped to 8.52%.
The variations in the return on total capital suggest changes in the company's efficiency in generating profits relative to the total capital invested. A higher return on total capital indicates better performance in utilizing capital resources to generate earnings. Conversely, a decreasing trend may raise concerns about the company's ability to generate returns on its total capital.
Further analysis and comparison with industry benchmarks can provide deeper insights into Helen of Troy Ltd's financial performance and its effectiveness in deploying capital to drive profitability over time.