Lancaster Colony Corporation (LANC)
Return on total capital
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 199,363 | 169,150 | 163,412 | 148,985 | 141,508 | 163,744 | 126,719 | 120,698 | 111,911 | 119,118 | 164,123 | 177,415 | 185,852 | 185,110 | 177,712 | 173,192 | 175,948 | 179,093 | 186,431 | 193,508 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 925,772 | 912,852 | 908,326 | 878,768 | 862,267 | 873,184 | 879,550 | 862,071 | 844,687 | 838,622 | 865,009 | 850,055 | 843,147 | 831,113 | 826,360 | 801,106 | 783,300 | 773,284 | 772,758 | 749,665 |
| Return on total capital | 21.53% | 18.53% | 17.99% | 16.95% | 16.41% | 18.75% | 14.41% | 14.00% | 13.25% | 14.20% | 18.97% | 20.87% | 22.04% | 22.27% | 21.51% | 21.62% | 22.46% | 23.16% | 24.13% | 25.81% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $199,363K ÷ ($—K + $925,772K)
= 21.53%
Lancaster Colony Corporation's return on total capital has shown some fluctuations over the past few quarters. The ratio has ranged from a low of 13.25% in Jun 30, 2022, to a high of 25.81% in Sep 30, 2019. Overall, the company has demonstrated a strong performance in generating returns on its total capital, with an average return of approximately 19.56% over the period analyzed.
The increasing trend observed from the end of 2020 to mid-2021 indicates an improvement in the company's ability to generate profits from its total invested capital. However, there was a slight dip in the ratio in the subsequent quarters, with a decrease from the peak of 25.81% in Sep 30, 2019, to 16.41% in Jun 30, 2023. It is worth noting that even during these lower points, the return on total capital remained above 14%.
Overall, the return on total capital for Lancaster Colony Corporation has generally been healthy and above the company's cost of capital, indicating efficiency in utilizing its invested capital to generate profits. This suggests that the company has been effective in managing its financial resources to create value for its shareholders.
Peer comparison
Jun 30, 2024