Prestige Brand Holdings Inc (PBH)

Return on total capital

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	342,429	-20,721	-20,369	-24,235	-22,415	336,007	331,417	325,591	329,919	323,431	314,280	308,625	297,402	300,382	303,343	299,788	291,155	63,789	64,926	66,502
Long-term debt	US$ in thousands	1,125,800	1,210,000	1,275,000	1,330,000	1,345,790	1,440,000	1,455,000	1,490,000	1,476,660	1,550,000	1,614,000	1,545,350	1,479,650	1,548,690	1,548,100	1,620,640	1,730,300	1,701,310	1,754,170	1,779,380
Total stockholders’ equity	US$ in thousands	1,655,080	1,600,580	1,535,960	1,480,300	1,447,080	1,686,860	1,619,840	1,584,740	1,577,610	1,518,320	1,461,650	1,416,250	1,358,300	1,323,220	1,278,220	1,227,010	1,170,970	1,156,490	1,112,790	1,101,620
Return on total capital		12.31%	-0.74%	-0.72%	-0.86%	-0.80%	10.75%	10.78%	10.59%	10.80%	10.54%	10.22%	10.42%	10.48%	10.46%	10.73%	10.53%	10.04%	2.23%	2.26%	2.31%

March 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $342,429K ÷ ($1,125,800K + $1,655,080K)
= 12.31%

Prestige Brand Holdings Inc's return on total capital has shown some fluctuations over the past several quarters. The return on total capital ranged from a low of -0.86% in June 2023 to a high of 12.31% in March 2024. Despite some variability, the return on total capital has generally remained positive, indicating that the company has been able to generate returns above its total capital invested in the business.

It is worth noting that the return on total capital dipped into negative territory in some quarters, such as in the last quarter of 2023 and the first quarter of 2020. This could suggest challenges in generating sufficient returns relative to the total capital employed during those periods. However, the company managed to improve its return on total capital in subsequent quarters, reaching double-digit percentages in certain periods.

Overall, while there have been fluctuations in Prestige Brand Holdings Inc's return on total capital, the company has demonstrated an ability to generate positive returns on the capital invested over the analyzed period. Monitoring this metric going forward will be essential to assess the company's efficiency in utilizing its total capital effectively.