Synnex Corporation (SNX)
Return on total capital
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,194,210 | 1,078,030 | 1,050,870 | 623,218 | 521,341 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 8,035,430 | 8,183,180 | 8,025,510 | 7,905,980 | 4,338,860 |
| Return on total capital | 14.86% | 13.17% | 13.09% | 7.88% | 12.02% |
November 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,194,210K ÷ ($—K + $8,035,430K)
= 14.86%
To analyze Synnex Corporation's return on total capital based on the provided data, we observe the trend over five years.
The return on total capital for Synnex Corporation has shown fluctuations during the period under review. Starting at 12.02% on November 30, 2020, it decreased to 7.88% by November 30, 2021, reflecting a decline in the company's profitability in the following year. However, the returns then exhibited an upward trajectory, reaching 13.09% on November 30, 2022, and further increasing to 13.17% on November 30, 2023. This indicates an improvement in the company's ability to generate profits relative to its total capital employed.
Notably, by November 30, 2024, Synnex Corporation's return on total capital experienced a significant rise to 14.86%, signaling a substantial enhancement in profitability and efficiency in using its total capital. This upward trend in returns suggests that the company has been able to enhance its operational performance and optimize its capital allocation over the years, potentially improving shareholder value.
Overall, the data indicates that Synnex Corporation has managed to effectively generate returns on its total capital, with a notable increase in profitability in recent years.
Peer comparison
Nov 30, 2024