Bio-Techne Corp (TECH)
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 | 206,686 | 349,695 | 321,647 | 162,952 | 295,674 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,068,850 | 1,966,520 | 1,701,770 | 1,562,970 | 1,381,190 |
| Return on total capital | 9.99% | 17.78% | 18.90% | 10.43% | 21.41% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $206,686K ÷ ($—K + $2,068,850K)
= 9.99%
Bio-Techne Corp's return on total capital has exhibited some fluctuations over the past five years. The return on total capital was 9.99% in 2024, a decrease from the previous year's figure of 17.78% in 2023. This decline suggests that the company may have been less effective in generating returns on the total capital employed in its operations compared to the prior year.
Furthermore, looking back over the five-year period, the return on total capital reached a peak of 21.41% in 2020, indicating a strong performance in efficiently utilizing its capital to generate profits. However, this was followed by a decrease in the subsequent years, with 2021 and 2024 showing lower returns compared to the peak year.
Overall, Bio-Techne Corp's return on total capital has shown variability over the years, with fluctuations in performance levels. It is important for the company to assess the factors contributing to these fluctuations and identify areas for improvement in order to enhance its efficiency in utilizing capital and drive sustainable profitability in the future.
Peer comparison
Jun 30, 2024