ScanSource Inc (SCSC)
Return on total capital
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 109,960 | 118,832 | 134,507 | 132,354 | 143,353 | 140,710 | 139,135 | 129,885 | 125,245 | 124,889 | 110,631 | 70,914 | 29,870 | -216,729 | -228,916 | -202,116 | -172,978 | 64,330 | 76,187 | 86,871 |
| Long-term debt | US$ in thousands | 136,149 | 138,024 | 139,899 | 141,774 | 144,006 | 145,881 | 147,756 | 149,631 | 123,733 | 126,546 | 129,358 | 132,171 | 135,331 | 137,206 | 139,081 | 140,956 | 143,175 | 145,050 | 146,925 | 148,800 |
| Total stockholders’ equity | US$ in thousands | 924,255 | 944,051 | 953,601 | 915,253 | 905,298 | 878,895 | 862,386 | 827,004 | 806,528 | 806,654 | 768,525 | 746,094 | 731,191 | 690,575 | 682,139 | 671,227 | 678,246 | 897,678 | 927,580 | 905,751 |
| Return on total capital | 10.37% | 10.98% | 12.30% | 12.52% | 13.66% | 13.73% | 13.77% | 13.30% | 13.46% | 13.38% | 12.32% | 8.07% | 3.45% | -26.18% | -27.88% | -24.89% | -21.06% | 6.17% | 7.09% | 8.24% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $109,960K ÷ ($136,149K + $924,255K)
= 10.37%
ScanSource Inc's return on total capital has shown a fluctuating trend over the past few quarters. The return on total capital has generally been positive, indicating the company's ability to generate profits from its total capital employed. The most recent data indicates a return on total capital of 10.37% as of June 30, 2024, which is slightly lower compared to the previous quarter but still within a reasonable range.
Looking at the trend, there was a significant decline in return on total capital in the fourth quarter of 2021 and the first quarter of 2022, with negative returns recorded. However, the company managed to recover and improve its return on total capital in subsequent quarters, reaching a peak of 13.77% in the first quarter of 2023.
Overall, the company has demonstrated fluctuations in its return on total capital, which could be influenced by various factors such as changes in profitability, efficiency, and capital structure. It is important for investors and stakeholders to monitor this metric to assess the company's performance and efficiency in utilizing its total capital resources.
Peer comparison
Jun 30, 2024