H&R Block Inc (HRB)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 838,756 | 776,090 | 740,379 | 769,185 | 79,038 |
| Long-term debt | US$ in thousands | 1,491,100 | 1,488,970 | 1,486,880 | 1,490,040 | 2,845,870 |
| Total stockholders’ equity | US$ in thousands | 90,594 | 32,064 | 211,631 | 352,401 | 71,041 |
| Return on total capital | 53.03% | 51.02% | 43.59% | 41.75% | 2.71% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $838,756K ÷ ($1,491,100K + $90,594K)
= 53.03%
The return on total capital for H&R Block Inc has shown a steady increase over the past five years, reflecting improving profitability and efficiency in the utilization of the company's total capital. The return on total capital has increased from 2.71% in April 2020 to 53.03% in June 2024, indicating a significant improvement in the company's ability to generate profits from its capital investments.
This upward trend suggests that the company has been able to effectively leverage its total capital to generate higher returns for its shareholders. The consistent increase in return on total capital indicates that H&R Block Inc has been successful in optimizing its capital structure and deploying its resources efficiently to enhance profitability.
Overall, the rising trend in return on total capital for H&R Block Inc reflects positively on the company's financial performance and management's ability to generate returns for its investors.
Peer comparison
Jun 30, 2024