John Wiley & Sons (WLY)
Return on total capital
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 195,425 | -128,204 | 75,845 | 225,263 | 190,595 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 752,206 | 739,716 | 1,045,030 | 1,142,270 | 1,091,290 |
| Return on total capital | 25.98% | -17.33% | 7.26% | 19.72% | 17.47% |
April 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $195,425K ÷ ($—K + $752,206K)
= 25.98%
The analysis of John Wiley & Sons' return on total capital over the specified period reveals significant fluctuations. As of April 30, 2021, the company's return on total capital was 17.47%, indicating a relatively efficient utilization of its capital resources during that fiscal year. This figure increased notably to 19.72% by April 30, 2022, reflecting an improvement in overall capital profitability, potentially driven by operational efficiencies or favorable market conditions.
However, a pronounced decline occurred subsequent to this growth, with the return decreasing sharply to 7.26% as of April 30, 2023. This decline suggests a deterioration in the company's ability to generate earnings from its total capital base, which could be attributable to increased expenses, reduced revenues, or changes in the asset base.
The downward trend persisted into the fiscal year ending April 30, 2024, when the return on total capital turned negative at -17.33%. This negative figure indicates that the company was incurring losses relative to its total capital employed, pointing to significant challenges in operational performance or external market pressures during that period.
For the fiscal year ending April 2025, data is not available, marked by a dash, possibly indicating that the figures are not yet reported or finalized.
Overall, the trajectory from 2021 through 2024 demonstrates a considerable decline in total capital efficiency, transitioning from a healthy profit-generating state to a period of losses. This pattern underscores the need for further investigation into the underlying causes, including operational, strategic, or market factors that may have contributed to this downturn.
Peer comparison
Apr 30, 2025