Simulations Plus Inc (SLP)
Return on total capital
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 6,131 | 6,998 | 9,215 | 8,807 | 8,725 | 9,703 | 10,552 | 11,998 | 14,911 | 14,392 | 13,937 | 11,902 | 11,107 | 12,970 | 12,259 | 11,650 | 11,387 | 11,226 | 11,331 | 11,228 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 182,431 | 180,859 | 177,038 | 172,341 | 170,029 | 169,390 | 164,593 | 180,122 | 178,248 | 177,559 | 172,576 | 168,456 | 165,782 | 165,398 | 161,497 | 158,031 | 156,035 | 46,587 | 40,862 | 39,187 |
| Return on total capital | 3.36% | 3.87% | 5.21% | 5.11% | 5.13% | 5.73% | 6.41% | 6.66% | 8.37% | 8.11% | 8.08% | 7.07% | 6.70% | 7.84% | 7.59% | 7.37% | 7.30% | 24.10% | 27.73% | 28.65% |
August 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $6,131K ÷ ($—K + $182,431K)
= 3.36%
Simulations Plus Inc's return on total capital has shown some fluctuations over the past several quarters. The return on total capital ranged from as low as 3.36% in the most recent period to a high of 28.65% in the quarter ending February 29, 2020.
In recent quarters, the return on total capital has been relatively stable, hovering around the mid-single digits. However, there was a significant spike in the return on total capital in the quarters ending November 30, 2019, and August 31, 2020, where it reached exceptionally high levels of 24.10% and 27.73%, respectively.
Overall, the return on total capital for Simulations Plus Inc has exhibited some variability, but in general, the company has been able to generate positive returns on its total capital investment, indicating efficiency in utilizing its capital resources to generate profits. It is essential for the company to continue monitoring and managing its total capital effectively to ensure consistent and sustainable returns in the future.
Peer comparison
Aug 31, 2024