Quanex Building Products (NX)
Return on total capital
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 62,675 | 105,182 | 112,322 | 82,624 | 55,545 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,010,750 | 545,554 | 464,835 | 419,782 | 355,759 |
| Return on total capital | 6.20% | 19.28% | 24.16% | 19.68% | 15.61% |
October 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $62,675K ÷ ($—K + $1,010,750K)
= 6.20%
Quanex Building Products' return on total capital has fluctuated over the past five years. The company experienced a significant decrease in its return on total capital from 24.16% in 2022 to 6.20% in 2024. This indicates a notable decline in the efficiency of utilizing its total capital to generate profits. However, it is worth noting that the return on total capital was relatively stable around the 15-19% range in the years prior to 2022, reflecting a consistent performance in efficiently generating returns for the capital invested. Further analysis would be needed to understand the underlying reasons for the significant decrease in 2024, as it could be influenced by various factors such as changes in the company's operations, profitability, or capital structure.
Peer comparison
Oct 31, 2024