Quanex Building Products (NX)
Return on total capital
| 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 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | -26,311 | 9,727 | 7,383 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 330,187 | 361,350 | 360,888 |
| Return on total capital | 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% | -7.97% | 2.69% | 2.05% |
January 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $109,520K ÷ ($—K + $555,029K)
= 19.73%
The return on total capital for Quanex Building Products has exhibited some fluctuations over the past few quarters. From January 2020 to October 2022, the return on total capital ranged from a low of 15.61% to a high of 24.62%, indicating variability in the company's ability to generate returns relative to its total invested capital during this period.
However, starting from the April 2020 quarter, there was a significant decline in the return on total capital, with negative returns recorded in the subsequent quarters. This downward trend continued until the April 2021 quarter, where the return on total capital was notably low at 1.02%.
Subsequently, there was a slight improvement in the return on total capital from the April 2021 quarter to the January 2023 quarter, where it ranged from 17.36% to 21.60%. The return on total capital peaked at 24.62% in the July 2022 quarter before slightly declining in the subsequent quarters.
Overall, the return on total capital for Quanex Building Products has shown some volatility and fluctuation over the analyzed period, with periods of both strong performance and underperformance. It is important for the company to closely monitor and manage its capital allocation and operational efficiency to ensure sustained and optimal returns on total capital in the future.
Peer comparison
Jan 31, 2024