John Wiley & Sons (WLY)
Return on total capital
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -138,044 | 70,845 | 229,463 | 194,295 | -38,133 |
| Long-term debt | US$ in thousands | 767,096 | 743,292 | 768,277 | 809,088 | 765,650 |
| Total stockholders’ equity | US$ in thousands | 739,716 | 1,045,030 | 1,142,270 | 1,091,290 | 933,624 |
| Return on total capital | -9.16% | 3.96% | 12.01% | 10.22% | -2.24% |
April 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-138,044K ÷ ($767,096K + $739,716K)
= -9.16%
Based on the data provided for John Wiley & Sons, the return on total capital has shown varying trends over the past five years. In the most recent year, ending April 30, 2024, the return on total capital was negative at -9.16%, indicating that the company's capital utilization resulted in a loss during this period.
In the preceding year, the return on total capital was 3.96%, showcasing a modest increase from the negative return in the previous year. The trend further improved in the year ending April 30, 2022, with a return on total capital of 12.01%, indicating more efficient capital utilization and profitability.
The financial performance was also strong in the year ending April 30, 2021, with a return on total capital of 10.22%. However, there was a decrease in performance in the year ending April 30, 2020, where the return on total capital stood at -2.24%, reflecting a period of lower efficiency in capital allocation.
Overall, the return on total capital for John Wiley & Sons has been inconsistent over the past five years, with both positive and negative returns. It is crucial for the company to assess and manage its capital allocation strategies effectively to enhance profitability and ensure sustainable long-term growth.
Peer comparison
Apr 30, 2024