Korn Ferry (KFY)
Return on total capital
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 353,719 | 361,617 | 325,255 | 315,484 | 280,702 | 263,120 | 237,497 | 265,000 | 321,601 | 373,220 | 466,623 | 464,866 | 458,194 | 430,629 | 391,706 | 331,853 | 193,518 | 107,780 | 64,340 | 78,353 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,866,460 | 1,792,740 | 1,777,740 | 1,753,840 | 1,733,060 | 1,703,620 | 1,656,150 | 1,686,680 | 1,648,070 | 1,608,980 | 1,578,050 | 1,564,750 | 1,544,350 | 1,531,280 | 1,479,520 | 1,417,190 | 1,366,390 | 1,293,190 | 1,219,970 | 1,215,660 |
| Return on total capital | 18.95% | 20.17% | 18.30% | 17.99% | 16.20% | 15.44% | 14.34% | 15.71% | 19.51% | 23.20% | 29.57% | 29.71% | 29.67% | 28.12% | 26.48% | 23.42% | 14.16% | 8.33% | 5.27% | 6.45% |
April 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $353,719K ÷ ($—K + $1,866,460K)
= 18.95%
The analysis of Korn Ferry's return on total capital over the specified periods reveals notable fluctuations and trends. During the early months of the observed timeframe, specifically on July 31, 2020, the ratio stood at 6.45%, indicating relatively modest capital efficiency amid the initial impact of the pandemic. This figure declined further by October 31, 2020, reaching 5.27%, suggesting increased challenges in generating returns from total capital during this period.
Subsequently, a significant upward trajectory commenced, with the ratio rising to 8.33% on January 31, 2021, and further accelerating to 14.16% on April 30, 2021. This upward momentum continued impressively through 2021, with the ratio recording 23.42% on July 31 and peaking at 26.48% by October 31, 2021. The positive trend persisted into early 2022: 28.12% on January 31 and approaching 29.67% by April 30, maintaining high levels through July and October of 2022, at 29.71% and 29.57%, respectively.
This period of elevated returns appears to have peaked around late 2022, subsequently exhibiting a decline: by January 31, 2023, the ratio decreased to 23.20%, followed by further reductions to 19.51% in April 2023 and 15.71% in July 2023. The downward trend continues through October 2023, where the ratio was recorded at 14.34%.
In the most recent periods, there is evidence of a modest recovery. The ratio increased to 15.44% on January 31, 2024, further rising to 16.20% in April 2024, and reaching 17.99% in July 2024. As of October 31, 2024, the return on total capital stood at 18.30%, with a continued upward movement to 20.17% on January 31, 2025. The latest available data shows a slight decrease thereafter to 18.95% in April 2025.
Overall, the historical behavior demonstrates a pattern of initial low capital efficiency at the pandemic’s onset, followed by a period of rapid improvement and sustained high levels in late 2021 and 2022. This peak was then succeeded by a declining trend through 2023, with partial recovery commencing in early 2024. The fluctuations indicate variability in the company's ability to generate returns relative to the total capital base, influenced potentially by broader economic conditions and company-specific strategic factors.
Peer comparison
Apr 30, 2025