H&R Block Inc (HRB)
Return on total capital
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Apr 30, 2021 | Mar 31, 2021 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 859,516 | 841,880 | 792,441 | 821,478 | 841,402 | 866,410 | 810,708 | 793,200 | 784,190 | 705,277 | 713,154 | 716,339 | 747,351 | 670,476 | 869,933 | 1,301,933 | 1,214,091 | 2,065,667 | 773,195 | 355,861 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 1,490,040 | — | 2,369,570 |
| Total stockholders’ equity | US$ in thousands | 88,896 | -192,838 | -872,460 | -368,065 | 90,594 | -129,806 | -772,652 | -344,884 | 32,064 | -36,392 | -643,479 | -264,985 | 211,631 | 44,856 | -372,655 | 15,528 | 352,401 | 352,401 | 352,401 | -534,580 |
| Return on total capital | 966.88% | — | — | — | 928.76% | — | — | — | 2,445.70% | — | — | — | 353.14% | 1,494.73% | — | 8,384.42% | 344.52% | 112.12% | 219.41% | 19.39% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $859,516K ÷ ($—K + $88,896K)
= 966.88%
The data on H&R Block Inc.'s return on total capital (ROTC) reveals significant fluctuations over the observed period, indicating considerable variability in the company's efficiency in generating profits relative to its total capital base.
At the onset, in January 31, 2021, the ROTC stood at approximately 19.39%, suggesting moderate profitability relative to the company's capital structure. However, subsequent months show substantial volatility. By March 31, 2021, the ROTC surged dramatically to 219.41%, reflecting a rapid increase in profitability or a significant change in overall capital structure or earnings. This upward trajectory continued into April and June 2021, with ROTC reaching approximately 112.12% and an extraordinary 344.52%, respectively, indicating periods of exceptional performance or leverage effects.
A marked escalation occurred by September 2021, where the ROTC skyrocketed to approximately 8,384.42%. This extraordinary figure suggests either an extraordinary gain, accounting adjustment, or a substantial use of leverage given the rapid increase within a short period. Following this peak, the data for the end of 2021 is unavailable or marked as missing, which constrains the continuous assessment.
In the subsequent reporting periods, the figures fluctuate markedly. The ROTC in March 2022 is recorded at approximately 1,494.73%, representing another period of intense profitability or leveraged financial performance. The value decreases to approximately 353.14% by June 2022, then is not available for later quarters until June 2024, which reports a value of approximately 928.76%.
The overall trend indicates that H&R Block's return on total capital has experienced periods of extraordinary volatility, often reaching levels that suggest either temporary anomalies, leverage effects, or accounting adjustments rather than sustainable operational performance. The pattern emphasizes the importance of cautious interpretation, as such extremes could reflect extraordinary events rather than a consistent profitability trend.
Recent estimates show a ROTC of approximately 966.88% as of June 2025, which continues to imply a high level of return relative to total capital but warrants careful consideration of the context behind these figures, including accounting practices, leverage, or one-time gains influencing the results.
Overall, the data suggests that H&R Block Inc.'s return on total capital has been highly volatile, characterized by extraordinary peaks and missing data points, indicating that the company's reported performance during these periods may be significantly affected by extraordinary items, leverage, or accounting policies rather than stable operational profitability.
Peer comparison
Jun 30, 2025