Bio-Techne Corp (TECH)

Return on total capital

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	203,079	249,274	265,748	296,817	349,693	338,841	329,138	357,548	321,647	251,201	227,735	190,623	162,952	218,376	221,289	316,404	295,677	257,913	261,596	133,924
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	2,068,850	2,014,380	1,963,560	1,997,750	1,966,520	1,889,690	1,827,110	1,751,150	1,701,770	1,714,380	1,702,990	1,639,360	1,562,970	1,539,450	1,521,920	1,439,280	1,381,190	1,291,270	1,323,350	1,174,220
Return on total capital		9.82%	12.37%	13.53%	14.86%	17.78%	17.93%	18.01%	20.42%	18.90%	14.65%	13.37%	11.63%	10.43%	14.19%	14.54%	21.98%	21.41%	19.97%	19.77%	11.41%

June 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $203,079K ÷ ($—K + $2,068,850K)
= 9.82%

Bio-Techne Corp's return on total capital has shown variability over the past few quarters, ranging from a low of 9.82% to a high of 21.98%. The return on total capital measures the efficiency of the company in generating profits from its total capital employed, including both debt and equity.

The trend indicates that the company's return on total capital has generally been on an upward trajectory, with occasional fluctuations. In the most recent quarter, the return on total capital was 9.82%, which was slightly lower compared to the previous quarter at 12.37%. However, it is essential to note that the company's return on total capital has seen significant improvement compared to the figures reported in the previous year.

The higher return on total capital figures, particularly in the range of 17-22% in some quarters, reflect the company's ability to effectively utilize its capital to generate profits. This is a positive sign for investors and indicates that Bio-Techne Corp is efficiently managing its resources to create value for shareholders.

Overall, the trend of improving return on total capital suggests that Bio-Techne Corp is effectively utilizing its capital base to generate returns for its investors and is moving towards a more profitable and efficient operational model.