Helen of Troy Ltd (HELE)
Return on total capital
| 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 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 262,107 | 248,655 | 218,746 | 218,812 | 212,040 | 208,722 | 221,616 | 241,879 | 272,810 | 246,995 | 257,705 | 289,769 | 282,047 | 254,739 | 233,298 | 188,521 | 178,645 | 225,122 | 202,222 | 198,358 |
| Long-term debt | US$ in thousands | 659,421 | 729,413 | 838,668 | 830,922 | 928,348 | 1,059,590 | 1,148,870 | 1,090,950 | 811,332 | 445,584 | 470,335 | 509,090 | 341,746 | 438,497 | 298,247 | 322,999 | 337,421 | 242,363 | 299,309 | 319,255 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,161,720 | 1,161,680 | 1,087,380 | 1,036,180 |
| Return on total capital | 11.41% | 10.74% | 9.35% | 9.33% | 8.77% | 8.29% | 8.70% | 9.88% | 12.76% | 13.72% | 14.83% | 16.93% | 17.84% | 15.45% | 14.52% | 12.20% | 11.92% | 16.03% | 14.58% | 14.63% |
February 29, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 fluctuations over the past several quarters. The return on total capital ranged from 8.29% to 17.84% during the period under review. In general, the company's return on total capital has been relatively healthy, averaging around 12-15% over the stated period.
The return on total capital has generally been on an upward trend, reaching its peak at 17.84% in the third quarter of the fiscal year 2021 but experienced a slight decline in the subsequent quarters. This suggests that the company has been effectively utilizing its capital to generate profits, although there have been fluctuations in performance.
It is important for investors and stakeholders to monitor the return on total capital to assess the efficiency of the company in generating profits from its invested capital. The company should continue to focus on optimizing its capital allocation strategies to maintain or improve its return on total capital in the future.