Korn Ferry (KFY)
Return on total capital
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 212,929 | 316,340 | 470,074 | 155,784 | 176,025 |
| Long-term debt | US$ in thousands | 396,946 | 396,194 | 395,477 | 394,794 | 394,144 |
| Total stockholders’ equity | US$ in thousands | 1,733,060 | 1,648,070 | 1,544,350 | 1,366,390 | 1,221,380 |
| Return on total capital | 10.00% | 15.47% | 24.23% | 8.85% | 10.90% |
April 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $212,929K ÷ ($396,946K + $1,733,060K)
= 10.00%
The return on total capital for Korn Ferry has fluctuated over the past five years. In April 2022, the return on total capital was the highest at 24.23%, indicating that the company generated significant profitability relative to the total capital employed in that year. This may suggest efficient utilization of resources and strong performance in generating profits.
However, in the following years, the return on total capital decreased, dropping to 8.85% in April 2021 and then slightly recovering to 10.90% in April 2020. These lower percentages suggest a potential decrease in profitability compared to the capital employed during those years.
Overall, it is important for Korn Ferry to continue monitoring and managing its return on total capital to ensure sustainable profitability and efficient use of capital resources. Additional analysis of the underlying factors driving these fluctuations in return on total capital may provide valuable insights for the company's financial performance and strategic decision-making.
Peer comparison
Apr 30, 2024