REX American Resources Corporation (REX)

Return on total capital

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	63,594	20,197	63,524	-24,706	-6,773
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	513,918	447,982	430,792	384,783	401,007
Return on total capital		12.37%	4.51%	14.75%	-6.42%	-1.69%

January 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $63,594K ÷ ($—K + $513,918K)
= 12.37%

The return on total capital for REX American Resources Corporation has fluctuated in recent years. In 2024, the return on total capital improved significantly to 12.37%, showing a strong performance compared to the previous year's 4.51%. However, this was lower than the figure reported in 2022, where the return on total capital was the highest at 14.75%.

In 2021 and 2020, REX American Resources Corporation reported negative returns on total capital, indicating that the company was not able to generate sufficient profits to cover the cost of both debt and equity capital employed.

Overall, the company's return on total capital has been volatile, with improvements and declines observed across the years. It is essential for REX American Resources Corporation to consistently evaluate and enhance its capital allocation strategies and operational efficiency to achieve sustainable profitability and value creation.