Hawkins Inc (HWKN)
Return on total capital
| 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 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 95,708 | 114,992 | 112,820 | 111,104 | 104,137 | 103,746 | 100,151 | 86,703 | 80,980 | 76,937 | 75,596 | 75,483 | 70,732 | 68,915 | 65,491 | 63,253 | 57,318 | 51,564 | 47,504 | 43,804 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 460,292 | 456,981 | 443,372 | 421,218 | 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 | 256,914 | 254,637 | 243,429 |
| Return on total capital | 20.79% | 25.16% | 25.45% | 26.38% | 25.65% | 26.35% | 26.17% | 23.37% | 23.14% | 22.55% | 22.81% | 24.09% | 23.37% | 23.63% | 23.03% | 22.98% | 21.61% | 20.07% | 18.66% | 17.99% |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $95,708K ÷ ($—K + $460,292K)
= 20.79%
Hawkins Inc's Return on Total Capital has shown a fluctuating trend over the reported periods, starting at 17.99% as of June 30, 2020, and reaching a peak of 26.38% by June 30, 2024. However, there was a decline in the return to 20.79% as of March 31, 2025.
The return on total capital represents the efficiency of the company in generating profits from the total capital employed, including both equity and debt. The increasing trend in the return indicates that the company has been effectively utilizing its capital to generate returns for its investors.
It is noteworthy that there was a significant increase in the return on total capital from September 30, 2023 (26.17%) to December 31, 2023 (26.35%), suggesting a potential improvement in the company's profitability and capital efficiency during that period.
However, the subsequent decline in the return by the end of the reporting period, as of March 31, 2025, may raise questions about the company's capital deployment strategies or operational performance, which could be further examined to understand the factors leading to the decrease in the return on total capital.
Peer comparison
Mar 31, 2025