ScanSource Inc (SCSC)
Return on total capital
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 72,784 | 97,564 | 93,478 | 99,356 | 99,017 | 103,262 | 116,914 | 130,637 | 141,636 | 140,710 | 139,135 | 129,785 | 125,145 | 121,736 | 108,166 | 93,878 | 73,205 | -58,797 | -72,207 | -70,485 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 906,409 | 901,746 | 900,662 | 920,893 | 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 |
| Return on total capital | 8.03% | 10.82% | 10.38% | 10.79% | 10.71% | 10.94% | 12.26% | 14.27% | 15.65% | 16.01% | 16.13% | 15.69% | 15.52% | 15.09% | 14.07% | 12.58% | 10.01% | -8.51% | -10.59% | -10.50% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $72,784K ÷ ($—K + $906,409K)
= 8.03%
The analysis of ScanSource Inc.'s return on total capital over the specified period reveals a significant evolution from negative to positive values, followed by fluctuations within a generally stable range.
From September 30, 2020, the metric was recorded at -10.50%, indicating that the company was experiencing an overall loss relative to its total capital during that period. This negative return persisted through the end of 2020, with a slight decline to -10.59% by December 31, 2020.
In the subsequent quarters of 2021, a notable improvement is observed. By March 31, 2021, the return decreased in negativity to -8.51%, and then transitioned into positive territory in June 2021 with a value of 10.01%. This marked a shift from losses to generating returns exceeding the total capital invested.
Throughout 2021 and into 2022, the return on total capital continued to increase, reaching peaks around 15% in March 2022 and June 2022, and maintaining an upward trajectory with values such as 15.69% in September 2022 and 16.13% in December 2022. This period reflects a phase of operational improvement and potentially enhanced profitability or efficiency in capital utilization.
During 2023, the return demonstrated slight fluctuations. It slightly declined from 16.01% in March 2023 to 14.27% by September 2023. Subsequently, a decreasing trend persisted through December 2023 and into 2024, with values such as 12.26% in December 2023, 10.94% in March 2024, and stabilizing around 10.71% and 10.79% in June and September 2024, respectively. These figures suggest a gradual erosion of the high returns experienced earlier, possibly attributable to increased capital investments, market conditions, or operational factors.
Looking further ahead, projections for 2025 show a decline to 8.03% in June, indicating a continued downward trend in the return on total capital. Despite this decline, the metric remains positive, signifying that the company is generating a return exceeding its capital costs, although at a diminishing rate.
Overall, the data depict an initial challenging period with negative returns, followed by a marked recovery and stabilization at elevated levels before experiencing a gradual decline starting in late 2023 and progressing into 2025. This pattern may reflect changes in operational efficiency, market conditions, investment strategies, or external economic factors influencing the company's capacity to generate returns on its total capital.
Peer comparison
Jun 30, 2025