Hawkins Inc (HWKN)
Return on total capital
| 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 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 104,036 | 102,435 | 99,228 | 92,773 | 88,150 | 84,876 | 83,868 | 76,940 | 71,194 | 68,860 | 65,090 | 62,058 | 55,878 | 50,760 | 47,047 | 43,648 | 41,671 | 39,702 | 39,647 | 37,301 |
| Long-term debt | US$ in thousands | 88,818 | 109,797 | 49,775 | 78,353 | 101,731 | 120,710 | 130,688 | 149,166 | 115,644 | 105,915 | 73,891 | 85,868 | 88,845 | 85,821 | 65,798 | 55,775 | 49,751 | 57,728 | 64,705 | 74,682 |
| Total stockholders’ equity | US$ in thousands | 406,026 | 393,754 | 382,656 | 371,001 | 350,016 | 341,160 | 331,414 | 313,277 | 302,601 | 291,694 | 284,313 | 275,205 | 265,246 | 256,915 | 254,637 | 243,429 | 233,484 | 232,211 | 229,435 | 223,392 |
| Return on total capital | 21.02% | 20.34% | 22.95% | 20.65% | 19.51% | 18.38% | 18.15% | 16.64% | 17.02% | 17.32% | 18.17% | 17.19% | 15.78% | 14.81% | 14.68% | 14.59% | 14.71% | 13.69% | 13.48% | 12.51% |
March 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $104,036K ÷ ($88,818K + $406,026K)
= 21.02%
Hawkins Inc's return on total capital has shown a relatively stable and increasing trend over the past several quarters, with values ranging between 12.51% to 22.95%. The return on total capital indicates the company's ability to generate profits from the total capital employed in its operations.
The increasing trend in return on total capital suggests that Hawkins Inc is becoming more efficient in utilizing its capital to generate profits. This may be attributed to factors such as improved operational efficiency, effective cost management, and potentially better utilization of assets.
Overall, the consistent improvement in return on total capital reflects positively on Hawkins Inc's financial performance and indicates that the company is efficiently utilizing its capital to generate returns for its shareholders. However, it is essential to monitor this ratio over time to ensure sustained efficiency in capital utilization.
Peer comparison
Mar 31, 2024