REX American Resources Corporation (REX)
Return on total capital
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 33,074 | 43,221 | 73,807 | 70,208 | 66,265 | 52,897 | 25,761 | 23,463 | 25,775 | 50,340 | 65,733 | 64,178 | 67,043 | 36,267 | 32,084 | 20,434 | -3,075 | -4,080 | -24,631 | -19,622 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 560,337 | 564,491 | 539,633 | 524,467 | 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 |
| Return on total capital | 5.90% | 7.66% | 13.68% | 13.39% | 12.89% | 10.73% | 5.52% | 5.17% | 5.75% | 11.45% | 14.85% | 14.72% | 15.56% | 8.86% | 8.04% | 5.20% | -0.80% | -1.07% | -6.38% | -5.04% |
January 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $33,074K ÷ ($—K + $560,337K)
= 5.90%
The return on total capital for REX American Resources Corporation has shown fluctuations over the past few years. From April 2020 to July 2021, the company experienced negative returns on total capital, indicating that it was not generating sufficient profits to cover its capital costs during that period.
However, starting from April 2021, there was a notable improvement in the return on total capital, with positive percentages being reported consistently through July 2024. This positive trend suggests that the company was able to generate returns that exceeded its total capital, reflecting improved financial performance and efficient capital utilization.
The return on total capital peaked at 15.56% in January 2022 and remained relatively strong at around 13-14% until July 2024. The subsequent slight decline in the return on total capital to 5.90% in January 2025 may indicate a potential slowdown in profitability or capital efficiency.
Overall, the improving trend in the return on total capital from 2021 to 2024 reflects positively on REX American Resources Corporation's ability to generate profits relative to the total capital employed in its operations. However, management should continue monitoring and optimizing capital allocation to sustain or enhance these returns in the future.
Peer comparison
Jan 31, 2025