REX American Resources Corporation (REX)

Return on total capital

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	63,594	60,711	32,480	30,182	32,494	56,372	71,764	68,820	69,925	37,991	32,571	22,310	561	311	-19,002	-13,993	-1,144	-5,519	2,707	6,756
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	513,918	492,993	466,560	453,641	447,982	439,472	442,784	436,018	430,792	409,323	399,272	392,609	384,783	381,909	386,354	389,488	401,007	396,565	398,578	395,795
Return on total capital		12.37%	12.31%	6.96%	6.65%	7.25%	12.83%	16.21%	15.78%	16.23%	9.28%	8.16%	5.68%	0.15%	0.08%	-4.92%	-3.59%	-0.29%	-1.39%	0.68%	1.71%

January 31, 2024 calculation

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

The return on total capital for REX American Resources Corporation has shown fluctuations over the past few quarters. The ratio ranged from a low of -4.92% in July 2020 to a high of 16.23% in January 2022. Overall, the return on total capital has generally been positive, indicating that the company has been generating returns above its total capital investment.

The trend in the return on total capital seems to have peaked in the earlier quarters of 2022 before slightly declining in the most recent quarter. The company experienced a notable decrease in the return on total capital from October 2022 to April 2023, followed by a slight recovery in the subsequent quarters.

It is important for stakeholders to monitor the return on total capital closely as it provides insight into how efficiently REX American Resources Corporation is utilizing its capital to generate profits. The management should continue to focus on optimizing capital allocation strategies to maintain and improve the return on total capital in order to drive long-term shareholder value.