Post Holdings Inc (POST)
Return on total capital
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 680,100 | 1,160,100 | 557,500 | 313,400 | 443,200 |
| Long-term debt | US$ in thousands | 6,039,000 | 5,956,600 | 6,441,600 | 6,959,000 | 7,066,000 |
| Total stockholders’ equity | US$ in thousands | 3,842,100 | 3,254,000 | 2,742,400 | 2,854,500 | 2,925,900 |
| Return on total capital | 6.88% | 12.60% | 6.07% | 3.19% | 4.44% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $680,100K ÷ ($6,039,000K + $3,842,100K)
= 6.88%
Based on the provided data, Post Holdings Inc's return on total capital has fluctuated over the past five years. In 2023, the return on total capital stood at 6.48%, showing an improvement from the previous year's 3.76%. This increase suggests that the company has been able to generate a higher return relative to its total capital base. However, over the five-year period, there has been some variability in the return on total capital, reaching its lowest point in 2022 at 3.76% and its highest in 2020 at 6.78%. This variance indicates that the company's ability to utilize its total capital effectively has experienced fluctuations. It is essential for stakeholders to monitor these changes to gauge the company's capital efficiency and overall financial performance.
Peer comparison
Sep 30, 2023