Prestige Brand Holdings Inc (PBH)

Return on total capital

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	331,821	343,185	-24,751	312,815	273,136
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,834,900	1,655,080	1,447,080	1,577,610	1,358,300
Return on total capital		18.08%	20.74%	-1.71%	19.83%	20.11%

March 31, 2025 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $331,821K ÷ ($—K + $1,834,900K)
= 18.08%

Prestige Brand Holdings Inc's return on total capital has shown some fluctuations over the past five years. In March 2021, the return on total capital was 20.11%, indicating that the company generated a return of 20.11% for every dollar of total capital employed. The ratio slightly decreased to 19.83% by March 2022 but remained at a relatively healthy level.

However, in March 2023, the return on total capital turned negative, indicating that the company experienced a loss on its capital employed. This negative figure of -1.71% raises concerns about the company's ability to efficiently utilize its total capital during that period.

Prestige Brand Holdings Inc managed to recover in the following years, as indicated by the return on total capital of 20.74% in March 2024 and 18.08% in March 2025. These figures suggest that the company regained its ability to generate positive returns above the cost of its total capital, although it was slightly lower in 2025 compared to previous years.

In conclusion, while Prestige Brand Holdings Inc experienced fluctuations in its return on total capital over the past five years, the company generally demonstrated the ability to generate positive returns on its total capital, with some periods of underperformance. Further analysis into the reasons behind the fluctuations in the return on total capital could provide valuable insights into the company's financial performance and efficiency in capital utilization.