Dorian LPG Ltd (LPG)
Return on total capital
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 328,830 | 198,360 | 92,399 | 116,100 | 161,069 |
| Long-term debt | US$ in thousands | 551,549 | 604,257 | 590,687 | 539,652 | 581,919 |
| Total stockholders’ equity | US$ in thousands | 1,023,530 | 873,846 | 920,151 | 946,825 | 977,052 |
| Return on total capital | 20.88% | 13.42% | 6.12% | 7.81% | 10.33% |
March 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $328,830K ÷ ($551,549K + $1,023,530K)
= 20.88%
Dorian LPG Ltd's return on total capital has shown an increasing trend over the past five years, with a significant improvement from 2018 to 2024. The return on total capital increased from 10.33% in 2020 to 20.88% in 2024, indicating the company's ability to generate higher profits relative to its total capital employed. This upward trajectory suggests that Dorian LPG Ltd has been effectively utilizing its capital to generate returns for its shareholders. Overall, the consistent improvement in return on total capital reflects positively on the company's financial performance and operational efficiency over the years.