Synnex Corporation (SNX)

Return on total capital

		Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 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	1,194,211	1,156,153	1,093,507	1,127,721	1,159,311	1,114,091	1,126,595	1,050,873	902,076	808,746	703,910	623,218	638,232	622,401	562,644	521,341	294,918	371,400	457,911	519,429
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	8,035,430	8,164,080	7,956,460	8,102,180	8,183,180	8,367,750	8,148,590	8,025,510	7,771,650	7,981,660	8,021,860	7,905,980	2,338,290	2,255,670	2,129,300	4,338,860	4,093,580	3,834,380	3,855,690	3,788,450
Return on total capital		14.86%	14.16%	13.74%	13.92%	14.17%	13.31%	13.83%	13.09%	11.61%	10.13%	8.77%	7.88%	27.29%	27.59%	26.42%	12.02%	7.20%	9.69%	11.88%	13.71%

November 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,194,211K ÷ ($—K + $8,035,430K)
= 14.86%

Synnex Corporation's return on total capital has shown fluctuations over the past few years. The ratio was at a relatively strong level of 13.71% as of November 30, 2019, indicating efficient utilization of both debt and equity capital to generate profits. However, there was a decrease to 7.20% by August 31, 2020, which could suggest potential challenges in capital efficiency during that period.

The return on total capital then experienced a significant improvement, reaching 27.59% as of May 31, 2021, and maintaining levels above 25% for the next few quarters. This surge suggests a positive turnaround in the company's capital management and profitability.

Despite a slight decline to 13.09% as of August 31, 2022, the ratio has generally remained at healthy levels, demonstrating that Synnex Corporation has been effectively utilizing its capital to generate returns for its stakeholders. As of November 30, 2024, the return on total capital stands strong at 14.86%, reflecting continued efficiency in capital allocation and generating value for the company.

Overall, Synnex Corporation's return on total capital has shown resilience and improvement over the years, indicating the company's ability to generate profits from its invested capital.