ScanSource Inc (SCSC)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 90,324 | 143,353 | 125,246 | 29,870 | -172,979 |
| Long-term debt | US$ in thousands | 136,149 | 144,006 | 123,733 | 135,331 | 143,175 |
| Total stockholders’ equity | US$ in thousands | 924,255 | 905,298 | 806,528 | 731,191 | 678,246 |
| Return on total capital | 8.52% | 13.66% | 13.46% | 3.45% | -21.06% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $90,324K ÷ ($136,149K + $924,255K)
= 8.52%
ScanSource Inc's return on total capital has fluctuated over the past five years. In 2024, the return on total capital was 8.52%, representing a decrease from the previous year's 13.66%. Despite this decline, the company's return on total capital remains positive, indicating that it is generating a return on its total invested capital.
Comparing the current year's return on total capital to the figures from prior years, we observe relative stability in 2022 and 2023 with percentages of 13.46% and 13.66%, respectively. In contrast, in 2021 ScanSource Inc's return on total capital dropped significantly to 3.45%, indicating a temporary deterioration in capital efficiency.
The most significant volatility in return on total capital was noted in 2020 when the figure plummeted to -21.06%. This drastic drop suggests that the company faced challenges and struggles in effectively utilizing its total capital during that period.
Overall, ScanSource Inc's return on total capital has seen fluctuations over the past five years, with both positive and negative trends. It is essential for the company to monitor and improve its capital efficiency to ensure sustainable profitability and competitiveness in the market.
Peer comparison
Jun 30, 2024