Insteel Industries Inc (IIIN)
Return on total capital
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 41,842 | 161,818 | 86,199 | 24,276 | 7,623 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 381,505 | 389,744 | 302,038 | 264,803 | 246,017 |
| Return on total capital | 10.97% | 41.52% | 28.54% | 9.17% | 3.10% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $41,842K ÷ ($—K + $381,505K)
= 10.97%
Insteel Industries, Inc.'s return on total capital has varied over the past five years. As of September 30, 2023, the return on total capital stood at 9.10%, a significant decrease from the prior year's 41.38%. This decline suggests a decrease in the company's ability to generate profits from its total capital. The return on total capital of 9.10% is closer to the level seen in 2020, indicating a potential return to previous performance levels. However, it remains markedly higher than the 2.26% reported in 2019. This fluctuation in the return on total capital could indicate changes in the company's operational efficiency, investment strategies, or capital structure. Further analysis of the company's financial statements and business operations may provide insights into the factors driving these fluctuations.
Peer comparison
Sep 30, 2023