REX American Resources Corporation (REX)

Return on total capital

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	64,329	68,839	25,775	69,084	4,212
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	560,337	513,918	447,982	430,792	384,783
Return on total capital		11.48%	13.39%	5.75%	16.04%	1.09%

January 31, 2025 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $64,329K ÷ ($—K + $560,337K)
= 11.48%

Based on the provided data, REX American Resources Corporation's return on total capital has shown fluctuations over the years.

In January 2021, the return on total capital was a mere 1.09%, indicating a relatively low efficiency in generating returns from the total capital employed. This could be a concerning sign for investors and stakeholders at that time.

However, by January 2022, there was a significant improvement as the return on total capital surged to 16.04%, suggesting a much better utilization of the company's total capital to generate returns. This sharp increase may indicate improved operational efficiency or strategic decisions that positively impacted the company's financial performance.

In the following years, the return on total capital continued to fluctuate. In January 2023, the return dropped to 5.75%, indicating a slight decline in efficiency compared to the previous year. However, by January 2024, there was a notable increase to 13.39%, which suggests a rebound in the company's ability to generate returns from its total capital.

In the most recent data point, January 31, 2025, the return on total capital was recorded at 11.48%, indicating a relatively strong performance in efficiently utilizing the total capital to generate returns, though not as high as the peak in 2022.

Overall, the trend in REX American Resources Corporation's return on total capital shows variability over the years, with significant improvements in some years and slight declines in others. It is important for investors and stakeholders to closely monitor this metric to assess the company's ability to generate returns from its total capital effectively.