Korn Ferry (KFY)
Return on total capital
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 319,535 | 243,610 | 321,601 | 458,194 | 192,978 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,866,460 | 1,733,060 | 1,648,070 | 1,544,350 | 1,366,390 |
| Return on total capital | 17.12% | 14.06% | 19.51% | 29.67% | 14.12% |
April 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $319,535K ÷ ($—K + $1,866,460K)
= 17.12%
The data on Korn Ferry's return on total capital over the period from April 2021 to April 2025 reveals significant fluctuations in the company's efficiency in generating profits relative to its total capital base.
In April 2021, the return on total capital was 14.12%, indicating a moderate level of profitability from the capital employed at that time. The subsequent year, April 2022, saw a substantial increase to 29.67%, nearly doubling the previous year's figure and reflecting a significant improvement in the company's ability to utilize its capital effectively to produce earnings.
However, this heightened profitability was not sustained, as by April 2023, the return declined to 19.51%. Although still higher than the level in April 2021, it represented a notable decrease from the peak in April 2022, suggesting potential challenges or changes in operational efficiency or market conditions affecting profitability.
The trend continued downward in April 2024, with the return further decreasing to 14.06%, approaching the levels observed in 2021. This decline may indicate renewed pressures on the company's ability to convert its total capital into earnings or possible shifts in economic or industry factors.
In the most recent data point for April 2025, the return on total capital increased modestly to 17.12%. While this suggests some recovery or improvement in the company's profitability metrics, it remains below the peak observed in April 2022 and near the levels seen at the beginning of the period.
Overall, the trajectory of Korn Ferry's return on total capital exhibits a sharp rise in 2022, followed by a decline through 2023 and 2024, with a slight recovery in 2025. This pattern may reflect periods of operational strength followed by challenges affecting capital efficiency, necessitating further analysis to understand underlying causes such as market conditions, strategic shifts, or investment dynamics.
Peer comparison
Apr 30, 2025