WD-40 Company (WDFC)
Return on total capital
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 96,351 | 90,777 | 86,850 | 88,894 | 77,954 |
| Long-term debt | US$ in thousands | 85,977 | 109,743 | 107,139 | 114,940 | 113,098 |
| Total stockholders’ equity | US$ in thousands | 230,526 | 210,178 | 188,624 | 200,382 | 160,313 |
| Return on total capital | 30.44% | 28.37% | 29.36% | 28.19% | 28.51% |
August 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $96,351K ÷ ($85,977K + $230,526K)
= 30.44%
WD-40 Company's return on total capital has shown consistent performance in the past five years. The return on total capital has ranged from 28.19% to 30.44%, indicating the company's ability to generate profits relative to the total capital invested in the business. The trend suggests that WD-40 Company has been effectively utilizing its capital to generate returns for its investors. This demonstrates the company's operational efficiency and effectiveness in deploying its resources to create value. Overall, the consistent and relatively high return on total capital over the years reflects positively on WD-40 Company's financial performance and management of capital.
Peer comparison
Aug 31, 2024