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.


Peer comparison

Jan 31, 2024