Standex International Corporation (SXI)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 99,150 | 169,193 | 87,067 | 56,665 | 40,723 |
| Long-term debt | US$ in thousands | 148,876 | 173,441 | 174,830 | 199,490 | 199,150 |
| Total stockholders’ equity | US$ in thousands | 621,503 | 607,449 | 499,343 | 506,425 | 461,632 |
| Return on total capital | 12.87% | 21.67% | 12.91% | 8.03% | 6.16% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $99,150K ÷ ($148,876K + $621,503K)
= 12.87%
Standex International Corporation's return on total capital has been fluctuating over the past five years. In 2023, the return on total capital was relatively high at 21.67%, indicating efficient use of capital to generate profits. However, in 2024, the return declined to 12.87%, although it remained above the levels observed in 2021 and 2020. This decreasing trend in return on total capital from 2023 to 2024 suggests a potential decrease in the company's ability to generate profits from its total capital. Standex International Corporation may need to assess its capital allocation strategies to improve efficiency and profitability in the future.
Peer comparison
Jun 30, 2024