Bio-Techne Corp (TECH)

Return on total capital

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	—	198,660	353,327	319,047	170,725
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,918,810	2,068,850	1,966,520	1,701,010	1,571,230
Return on total capital		0.00%	9.60%	17.97%	18.76%	10.87%

June 30, 2025 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,918,810K)
= 0.00%

The analysis of Bio-Techne Corp's return on total capital over the specified periods reveals significant fluctuations in the company's performance. As of June 30, 2021, the return on total capital stood at 10.87%, indicating a modest level of profitability relative to the company's total capital base. This figure increased markedly by June 30, 2022, reaching 18.76%, which suggests an improvement in the company's ability to generate profits from its overall capital investment, potentially driven by favorable operational efficiencies or revenue growth.

However, this positive trend did not sustain into the subsequent year, as the return on total capital decreased slightly to 17.97% by June 30, 2023. Despite the decline, the figure remained substantially higher than the 2021 level, indicating continued operational strength, albeit with some moderation.

The decline accelerated notably by June 30, 2024, when the return dropped to 9.60%. This represents a significant reduction compared to the previous year and could reflect increased capital investments, rising costs, or operational challenges impacting profitability. The sharp decrease underscores potential concerns regarding the company's ability to efficiently utilize its total capital.

By June 30, 2025, the return on total capital is reported as 0.00%. While this might suggest a reporting anomaly or an extraordinary circumstance, it predominantly indicates the absence of realized profitability relative to total capital at that time. This stark decline warrants further examination of the company's financial condition and operational performance during this period, as it could imply substantial losses, extraordinary write-offs, or a change in accounting practices.

Overall, the trend showcases initial growth and strong performance through 2022 and 2023, followed by a pronounced downturn in subsequent years, culminating in a reported zero return in 2025. This evolution highlights the importance of investigating underlying causes—such as operational issues, strategic shifts, or external factors—that may have contributed to this significant change in the company's capital efficiency.