The Marzetti Company (MZTI)
Return on total capital
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 225,419 | 214,237 | 166,477 | 143,621 | 181,360 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 998,495 | 925,772 | 862,267 | 844,687 | 843,147 |
| Return on total capital | 22.58% | 23.14% | 19.31% | 17.00% | 21.51% |
June 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $225,419K ÷ ($—K + $998,495K)
= 22.58%
The analysis of The Marzetti Company's return on total capital over the specified period reveals notable fluctuations and gradual trends. As of June 30, 2021, the return on total capital stood at 21.51%, indicating a relatively strong performance in utilizing both debt and equity to generate earnings before the subsequent decline. By June 30, 2022, this ratio decreased substantially to 17.00%, reflecting a diminished efficiency in capital utilization or potentially increased capital costs or operational challenges during that period.
Subsequently, the return experienced a partial recovery, rising to 19.31% by June 30, 2023, which suggests an improvement in operational efficiency or better capital management. The upward trend continued with a significant increase to 23.14% on June 30, 2024, reaching the highest point within the analyzed timeframe, possibly indicating effective strategic initiatives or favorable market conditions enhancing profitability relative to total capital employed.
In the following year, June 30, 2025, the return slightly declined to 22.58%. Despite this slight decrease, the ratio remained above the levels observed in 2022 and 2023, suggesting that The Marzetti Company maintained a relatively strong capacity to generate profits from its total capital base. Overall, the trend indicates periods of volatility with an overall upward trajectory from the lowest point in 2022 to the peak in 2024, reflecting the company's fluctuating but generally resilient ability to leverage its total capital for earnings generation.
Peer comparison
Jun 30, 2025