RPM International Inc (RPM)
Return on total capital
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 904,761 | 878,390 | 839,539 | 816,532 | 767,357 | 772,576 | 761,881 | 742,941 | 693,742 | 674,026 | 688,343 | 692,425 | 752,982 | 696,888 | 660,331 | 600,136 | 508,070 | 543,435 | 534,075 | 496,044 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,510,880 | 2,346,810 | 2,360,550 | 2,281,140 | 2,140,840 | 2,053,160 | 2,090,460 | 1,996,060 | 1,982,430 | 1,835,050 | 1,836,110 | 1,788,580 | 1,741,060 | 1,547,480 | 1,547,740 | 1,449,590 | 1,262,440 | 1,350,510 | 1,400,690 | 1,343,390 |
| Return on total capital | 36.03% | 37.43% | 35.57% | 35.79% | 35.84% | 37.63% | 36.45% | 37.22% | 34.99% | 36.73% | 37.49% | 38.71% | 43.25% | 45.03% | 42.66% | 41.40% | 40.25% | 40.24% | 38.13% | 36.92% |
May 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $904,761K ÷ ($—K + $2,510,880K)
= 36.03%
The return on total capital for RPM International Inc has displayed consistent performance over the periods analyzed. The ratios have generally ranged between 34.99% and 45.03%, indicating the company's ability to generate profits relative to the total capital employed. The highest return on total capital was observed in the earlier periods, specifically in fiscal year 2021 and the early months of fiscal year 2022, with ratios ranging from 37.49% to 45.03%.
Although the return on total capital decreased slightly in the latest periods, hovering around the 35-38% range, these figures still reflect a strong performance in utilizing the invested capital effectively to generate profits. Overall, the company has demonstrated a consistent ability to generate returns for its investors relative to the total capital employed in its operations.
Peer comparison
May 31, 2024