WD-40 Company (WDFC)
Return on total capital
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 96,258 | 95,774 | 94,567 | 96,122 | 90,777 | 86,320 | 79,320 | 81,967 | 86,850 | 79,695 | 88,251 | 84,060 | 88,894 | 102,317 | 94,651 | 91,810 | 77,954 | 75,619 | 78,944 | 81,217 |
| Long-term debt | US$ in thousands | 85,977 | 85,473 | 85,894 | 86,173 | 109,743 | 108,893 | 108,309 | 107,902 | 107,139 | 110,189 | 112,809 | 112,729 | 114,940 | 116,498 | 116,731 | 114,712 | 113,098 | 94,566 | 61,117 | 61,152 |
| Total stockholders’ equity | US$ in thousands | 230,526 | 222,242 | 216,278 | 215,932 | 210,178 | 205,827 | 197,272 | 191,370 | 188,624 | 195,229 | 198,850 | 198,398 | 200,382 | 202,632 | 187,580 | 174,500 | 160,313 | 144,983 | 147,959 | 145,992 |
| Return on total capital | 30.41% | 31.12% | 31.30% | 31.82% | 28.37% | 27.43% | 25.96% | 27.39% | 29.36% | 26.09% | 28.32% | 27.02% | 28.19% | 32.06% | 31.10% | 31.74% | 28.51% | 31.57% | 37.76% | 39.21% |
August 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $96,258K ÷ ($85,977K + $230,526K)
= 30.41%
The return on total capital for WD-40 Company has demonstrated a fluctuating trend over the past few reporting periods. From Nov 30, 2019, to Aug 31, 2024, the return on total capital ranged from a low of 25.96% to a high of 39.21%.
The return on total capital peaked at 39.21% in May 31, 2020, indicating strong efficiency in generating returns from the company's total capital. Subsequently, the return on total capital saw some volatility but generally remained in the mid to high 20% and low 30% range.
It is important to note that a return on total capital above the company's cost of capital signifies that the company is generating value from its investments. WD-40 Company's return on total capital has generally been healthy over the periods analyzed, reflecting efficient capital allocation and profitability.
Peer comparison
Aug 31, 2024