ScanSource Inc (SCSC)
Return on total capital
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 112,872 | 141,636 | 125,146 | 64,464 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 906,409 | 924,255 | 905,298 | 806,528 | 731,191 |
| Return on total capital | 0.00% | 12.21% | 15.65% | 15.52% | 8.82% |
June 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $906,409K)
= 0.00%
The analysis of ScanSource Inc's return on total capital over the specified period reveals significant fluctuations. As of June 30, 2021, the return on total capital stood at 8.82%, indicating a relatively modest level of efficiency in generating earnings from the company's invested capital. The following year, June 30, 2022, experienced a notable increase to 15.52%, nearly doubling the previous year's figure, which suggests improved operational efficiency and better utilization of capital resources. This upward trend continued into June 30, 2023, reaching 15.65%, representing a slight increase and indicating sustained performance improvements.
However, by June 30, 2024, the return on total capital declined to 12.21%, illustrating a decrease in profitability relative to the capital employed. This reduction may reflect operational challenges, changes in market conditions, or increased capital investments that temporarily impacted overall return efficiency. Finally, for June 30, 2025, the data indicates a value of 0.00%, which could imply a cessation of operations, reporting anomalies, or other extraordinary circumstances that effectively rendered the company’s return on total capital negligible or undeterminable.
Overall, the company's return on total capital demonstrates a period of growth between 2021 and 2023, followed by a notable decline in the subsequent years. The sharp drop to zero in 2025 warrants further investigation into the underlying causes, such as financial restructuring, impairment, or liquidation factors.
Peer comparison
Jun 30, 2025