QuinStreet Inc (QNST)
Return on total capital
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 6,033 | -29,716 | -20,572 | -4,687 | 30,625 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 244,044 | 216,825 | 229,801 | 286,000 | 295,550 |
| Return on total capital | 2.47% | -13.71% | -8.95% | -1.64% | 10.36% |
June 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $6,033K ÷ ($—K + $244,044K)
= 2.47%
The historical data for QuinStreet Inc.'s return on total capital (ROTC) over the period from June 30, 2021, to June 30, 2025, indicates significant fluctuations in profitability relative to the company's total capital.
In the fiscal year ending June 30, 2021, the ROTC was 10.36%, reflecting a positive return, suggesting effective utilization of total capital during that period. However, in the subsequent year ending June 30, 2022, the return declined sharply to -1.64%, crossing into negative territory, which indicates that the company was unable to generate sufficient income from its total capital to cover the costs associated with that capital base.
The trend continued into the fiscal year ending June 30, 2023, with the ROTC worsening further to -8.95%. This deterioration highlights continued challenges or inefficiencies in capital deployment, resulting in substantial negative returns. The decline persisted into the year ending June 30, 2024, with the ROTC decreasing to -13.71%, suggesting further erosion in the company's ability to generate positive returns on its capital investments.
Despite ongoing negative performance, there is a notable reversal in the trend in the fiscal year ending June 30, 2025, when the ROTC improved to 2.47%, turning positive again. This improvement signals a potential stabilization or recovery in the company's ability to generate returns on its total capital base, marking a significant shift from prior years of declining performance.
Overall, the data reflects a period of considerable volatility in QuinStreet Inc.’s return on total capital, characterized by a marked decline into negative territory over two consecutive years, followed by a modest recovery in the most recent year. This pattern suggests that while the company faced operational or strategic challenges leading to negative returns, recent developments may be indicating an improvement or restructuring efforts beginning to bear fruit.
Peer comparison
Jun 30, 2025