Quanex Building Products (NX)
Return on total capital
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 62,675 | 95,905 | 100,854 | 109,520 | 105,182 | 100,499 | 97,067 | 102,763 | 112,322 | 110,818 | 98,135 | 84,777 | 82,624 | 83,415 | 78,008 | 65,556 | 55,545 | 3,483 | 6,509 | -22,101 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,010,750 | 594,136 | 566,122 | 555,029 | 545,554 | 525,955 | 492,727 | 475,688 | 464,835 | 450,137 | 436,174 | 424,499 | 419,782 | 405,389 | 395,097 | 377,708 | 355,759 | 339,938 | 323,957 | 329,933 |
| Return on total capital | 6.20% | 16.14% | 17.81% | 19.73% | 19.28% | 19.11% | 19.70% | 21.60% | 24.16% | 24.62% | 22.50% | 19.97% | 19.68% | 20.58% | 19.74% | 17.36% | 15.61% | 1.02% | 2.01% | -6.70% |
October 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $62,675K ÷ ($—K + $1,010,750K)
= 6.20%
The return on total capital for Quanex Building Products has shown fluctuation over the past few quarters. The ratio was relatively low at 1.02% in Jan 31, 2021, and improved steadily to peak at 24.62% in Jul 31, 2022. Since then, there has been some volatility in the ratio, with a slight decrease to 19.97% in Jan 31, 2023, followed by a gradual increase to 24.16% in Oct 31, 2023.
In the most recent quarter, the return on total capital was 6.20%, marking a significant decline from the previous quarter's 16.14%. This decline could indicate potential challenges in generating returns relative to the total capital employed by the company. It will be important to monitor future quarters to see if this trend continues or if there are any improvements in the company's capital efficiency.
Peer comparison
Oct 31, 2024