Prestige Brand Holdings Inc (PBH)

Return on total capital

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	281,225	-22,415	329,919	297,402	291,155
Long-term debt	US$ in thousands	1,125,800	1,345,790	1,476,660	1,479,650	1,730,300
Total stockholders’ equity	US$ in thousands	1,655,080	1,447,080	1,577,610	1,358,300	1,170,970
Return on total capital		10.11%	-0.80%	10.80%	10.48%	10.04%

March 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $281,225K ÷ ($1,125,800K + $1,655,080K)
= 10.11%

Return on total capital is a key financial ratio that measures a company's ability to generate profit from its total capital employed, including both equity and debt. Looking at the historical trend of Prestige Brand Holdings Inc's return on total capital, we can observe fluctuations over the past five years.

In the fiscal year ending March 31, 2024, Prestige Brand Holdings Inc achieved a return on total capital of 10.11%, indicating a positive performance in utilizing its capital to generate profits. This marks a significant improvement compared to the previous year when the return on total capital was -0.80%, reflecting a period of underperformance or loss-making.

In the fiscal years ending March 31, 2022, 2021, and 2020, Prestige Brand Holdings Inc consistently maintained relatively strong return on total capital figures of 10.80%, 10.48%, and 10.04%, respectively. These consistent results suggest efficient capital utilization and profitability over multiple years.

The fluctuation in return on total capital over the years may signify changes in the company's operational efficiency, profitability, or the composition of its capital structure. Further analysis of the underlying factors influencing these fluctuations would provide valuable insights into the company's financial performance and strategic decisions.

Overall, the recent positive uptick in return on total capital for Prestige Brand Holdings Inc in 2024 is a promising sign of improved capital efficiency and profitability, although close monitoring of future financial results and strategic initiatives is advisable to assess the sustainability of this performance.