Post Holdings Inc (POST)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 788,300 | 680,100 | 1,160,100 | 557,500 | 313,400 |
| Long-term debt | US$ in thousands | 6,811,600 | 6,039,000 | 5,956,600 | 6,441,600 | 6,959,000 |
| Total stockholders’ equity | US$ in thousands | 4,090,600 | 3,842,100 | 3,254,000 | 2,742,400 | 2,854,500 |
| Return on total capital | 7.23% | 6.88% | 12.60% | 6.07% | 3.19% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $788,300K ÷ ($6,811,600K + $4,090,600K)
= 7.23%
Post Holdings Inc's return on total capital has shown some variability over the past five years, ranging from 3.19% in 2020 to 12.60% in 2022. The return on total capital for the most recent year ending September 30, 2024, is 7.23%. This indicates that the company is generating a return of 7.23% on its total invested capital.
The return on total capital is a key financial ratio that measures how effectively a company is generating returns from the total capital employed in its operations. A higher return on total capital signifies that the company is utilizing its capital efficiently and generating better returns for its investors.
While Post Holdings Inc's return on total capital has shown some fluctuations, it is important for the company to maintain a consistent and competitive return on total capital to demonstrate strong financial performance and create value for its shareholders. Further analysis of the company's operational efficiency and profitability metrics can provide additional insights into the factors impacting its return on total capital.
Peer comparison
Sep 30, 2024