H&R Block Inc (HRB)
Return on total capital
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 859,516 | 841,402 | 784,190 | 747,351 | 775,606 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 88,896 | 90,594 | 32,064 | 211,631 | 352,401 |
| Return on total capital | 966.88% | 928.76% | 2,445.70% | 353.14% | 220.09% |
June 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $859,516K ÷ ($—K + $88,896K)
= 966.88%
The return on total capital (ROTC) for H&R Block Inc exhibits significant variation over the period from June 30, 2021, through June 30, 2025. As of June 30, 2021, the ROTC was recorded at 220.09%, indicating a robust level of profitability relative to the company's total capital. This figure increased substantially to 353.14% by June 30, 2022, marking an improvement in the company's efficiency in generating returns from its invested capital.
A dramatic escalation occurred by June 30, 2023, when the ROTC surged to 2,445.70%. Such a substantial rise suggests a remarkable enhancement in the company's ability to convert total capital into earnings, potentially driven by operational efficiencies, strategic initiatives, or changes in accounting practices. This peak likely indicates an extraordinary period of profitability or a one-time gain that significantly boosted returns.
Subsequently, the ROTC decreased to 928.76% by June 30, 2024. Although still markedly higher than the previous years, this decline indicates a normalization or reduction in the extraordinary factors that inflated the prior year's return. This adjustment may reflect operational challenges, strategic shifts, or cyclical influences.
By June 30, 2025, the ROTC slightly increased again to 966.88%, maintaining a high level of return on total capital. This stabilization at a high percentage suggests that while the extraordinary boost experienced in 2023 has waned, H&R Block Inc continues to generate substantial returns relative to its total capital compared to earlier periods.
Overall, the data indicates a trend of increasing profitability, peaking dramatically in 2023, followed by stabilization at a high level of return. The extraordinary fluctuation highlights the impact of exceptional events or factors that temporarily enhanced the company's financial performance. The high levels of ROTC in the recent years reflect strong operational efficiency or strategic advantages, although the volatility underscores the importance of examining underlying causes for such fluctuations to assess the sustainability of these returns.
Peer comparison
Jun 30, 2025