Matthews International Corporation (MATW)
Return on total capital
| Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -14,081 | 62,522 | 74,924 | 79,030 | 85,713 | -15,850 | -24,362 | -41,286 | -76,440 | 5,347 | 2,533 | 8,095 | 37,969 | 50,265 | 46,629 | -54,382 | -70,955 | -155,158 | -130,174 | -16,846 |
| Long-term debt | US$ in thousands | 769,614 | 824,745 | 837,357 | 857,423 | 786,484 | 772,056 | 775,202 | 834,127 | 795,291 | 772,673 | 749,092 | 831,791 | 759,086 | 787,493 | 778,209 | 797,805 | 807,710 | 837,770 | 939,753 | 941,395 |
| Total stockholders’ equity | US$ in thousands | 437,158 | 503,645 | 509,300 | 508,762 | 525,668 | 522,221 | 512,693 | 505,245 | 487,352 | 590,872 | 629,190 | 644,820 | 636,548 | 625,748 | 619,046 | 621,464 | 610,807 | 601,107 | 590,147 | 714,420 |
| Return on total capital | -1.17% | 4.71% | 5.56% | 5.78% | 6.53% | -1.22% | -1.89% | -3.08% | -5.96% | 0.39% | 0.18% | 0.55% | 2.72% | 3.56% | 3.34% | -3.83% | -5.00% | -10.78% | -8.51% | -1.02% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-14,081K ÷ ($769,614K + $437,158K)
= -1.17%
Return on total capital is a key financial ratio that measures a company's ability to generate profits from the total capital invested in the business. Matthews International Corporation has shown fluctuations in its return on total capital over the past few quarters, ranging from negative figures to positive figures.
The trend indicates that the company's return on total capital has been inconsistent. In the most recent quarter, as of September 30, 2024, the return on total capital was recorded at -1.17%, showing a decrease from the previous quarter but still remaining in negative territory. This suggests that the company may not be effectively utilizing its total capital to generate profits.
It is important for the company to analyze the factors contributing to the fluctuating performance in return on total capital and take necessary steps to improve efficiency in capital utilization. Consistent monitoring and adjustment of operational and financial strategies may help Matthews International Corporation enhance its return on total capital and drive sustainable growth over time.