Matthews International Corporation (MATW)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -12,323 | 85,713 | -76,440 | 37,969 | -70,955 |
| Long-term debt | US$ in thousands | 769,614 | 786,484 | 795,291 | 759,086 | 807,710 |
| Total stockholders’ equity | US$ in thousands | 437,158 | 525,668 | 487,352 | 636,548 | 610,807 |
| Return on total capital | -1.02% | 6.53% | -5.96% | 2.72% | -5.00% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-12,323K ÷ ($769,614K + $437,158K)
= -1.02%
Based on the data provided, Matthews International Corporation's return on total capital has varied over the past five years. In 2024, the return on total capital was negative at -1.02%, indicating that the company's capital investments did not generate a positive return during that period. The highest return on total capital was observed in 2023 at 6.53%, suggesting that the company was able to generate a healthy return on its invested capital during that year.
On the other hand, in 2022 and 2020, the company experienced negative returns on total capital, indicating that its capital investments did not yield profitable returns during those years. In 2021, the return on total capital was positive but relatively modest at 2.72%, signifying a moderate level of profitability from the company's capital investments.
Overall, the fluctuating trend in Matthews International Corporation's return on total capital over the past five years indicates varying levels of efficiency in utilizing its capital to generate returns for shareholders. Further analysis of the company's financial performance and investment strategies may be necessary to identify the underlying factors contributing to these fluctuations in return on total capital.