Skyline Corporation (SKY)
Return on total capital
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 198,445 | 537,172 | 333,674 | 115,213 | 89,686 |
| Long-term debt | US$ in thousands | 24,669 | 12,430 | 12,430 | 39,330 | 77,330 |
| Total stockholders’ equity | US$ in thousands | 1,422,370 | 1,233,000 | 825,113 | 568,611 | 474,315 |
| Return on total capital | 13.71% | 43.13% | 39.84% | 18.95% | 16.26% |
March 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $198,445K ÷ ($24,669K + $1,422,370K)
= 13.71%
The return on total capital for Skyline Corporation has shown varying trends over the past five years.
In March 31, 2020, the return on total capital was at 16.26%. This indicates that for every dollar of total capital invested in the company, Skyline Corporation generated a return of 16.26 cents.
By March 31, 2021, the return on total capital had increased to 18.95%, showing an improvement in the company's ability to generate returns on its total capital.
The return on total capital continued to rise significantly in March 31, 2022, reaching 39.84%. This substantial increase suggests that Skyline Corporation was more efficient in utilizing its total capital to generate profits during this period.
March 31, 2023, saw a further increase in the return on total capital to 43.13%, indicating a strong performance in terms of generating returns on the capital invested in the business.
However, by March 31, 2024, there was a decline in the return on total capital to 13.71%. This decrease might indicate a potential decline in the company's profitability or efficiency in utilizing its total capital effectively.
Overall, the trend in return on total capital for Skyline Corporation fluctuated over the period, with both improvements and declines observed. This ratio is an important indicator of the company's profitability and efficiency in utilizing its capital resources effectively.
Peer comparison
Mar 31, 2024