Thor Industries Inc (THO)
Return on total capital
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 422,951 | 434,354 | 448,233 | 490,038 | 596,831 | 797,242 | 1,103,012 | 1,416,640 | 1,549,517 | 1,509,156 | 1,281,936 | 1,099,609 | 937,128 | 791,053 | 580,355 | 454,642 | 381,808 | 349,189 | 378,086 | 317,074 |
| Long-term debt | US$ in thousands | 1,101,260 | 1,209,050 | 1,390,470 | 1,271,880 | 1,291,310 | 1,641,080 | 1,758,510 | 1,714,640 | 1,754,240 | 1,983,600 | 2,167,730 | 2,232,270 | 1,594,820 | 1,718,130 | 1,821,520 | 1,585,020 | 1,652,830 | 1,965,980 | 1,746,610 | 1,780,090 |
| Total stockholders’ equity | US$ in thousands | 4,067,430 | 4,003,230 | 3,936,420 | 3,915,460 | 3,976,020 | 3,891,900 | 3,780,780 | 3,642,360 | 3,592,860 | 3,433,890 | 3,225,660 | 3,102,840 | 2,921,840 | 2,732,700 | 2,570,240 | 2,392,740 | 2,319,780 | 2,086,670 | 2,112,840 | 2,113,530 |
| Return on total capital | 8.18% | 8.33% | 8.41% | 9.45% | 11.33% | 14.41% | 19.91% | 26.44% | 28.98% | 27.86% | 23.77% | 20.61% | 20.75% | 17.77% | 13.21% | 11.43% | 9.61% | 8.62% | 9.80% | 8.14% |
July 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $422,951K ÷ ($1,101,260K + $4,067,430K)
= 8.18%
Thor Industries Inc's return on total capital has exhibited fluctuations over the past few years, with a general downward trend observed from 28.98% in Jul 31, 2022 to 8.18% in Jul 31, 2024. The return on total capital peaked at 28.98% in Jul 31, 2022, and has since been declining. Despite this decline, the company's return on total capital has remained positive throughout the period, indicating that it is generating a return on the total capital employed in its operations.
The return on total capital was relatively high in the earlier periods, with values above 20% from Jan 31, 2022, to Jan 31, 2023. However, the trend changed from Jul 31, 2023, onwards, with a notable decrease in the return on total capital. The return on total capital was at its lowest point at 8.18% in Jul 31, 2024.
This downward trend in the return on total capital suggests that Thor Industries Inc may be facing challenges in generating returns on the capital invested in the business. It may be worth further investigation to understand the factors contributing to this trend and to assess the company's strategies for improving its return on total capital in the future.
Peer comparison
Jul 31, 2024