John Wiley & Sons (WLY)
Return on total capital
| 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 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -138,044 | -107,289 | -74,244 | -7,489 | 70,845 | 31,565 | 145,817 | 163,767 | 229,463 | 227,374 | 211,297 | 208,659 | 194,366 | -22,807 | -4,114 | -13,818 | -38,146 | 205,989 | 205,572 | 202,248 |
| Long-term debt | US$ in thousands | 767,096 | 900,524 | 937,624 | 890,917 | 743,292 | 940,576 | 978,683 | 917,236 | 768,277 | 902,045 | 1,032,500 | 952,020 | 809,088 | 948,241 | 825,243 | 835,763 | 765,650 | 789,600 | 788,360 | 724,291 |
| Total stockholders’ equity | US$ in thousands | 739,716 | 748,306 | 867,276 | 937,206 | 1,045,030 | 1,026,900 | 1,077,810 | 1,082,330 | 1,142,270 | 1,119,520 | 1,106,660 | 1,077,900 | 1,091,290 | 1,063,800 | 1,020,210 | 973,745 | 933,624 | 1,197,240 | 1,179,000 | 1,132,010 |
| Return on total capital | -9.16% | -6.51% | -4.11% | -0.41% | 3.96% | 1.60% | 7.09% | 8.19% | 12.01% | 11.25% | 9.88% | 10.28% | 10.23% | -1.13% | -0.22% | -0.76% | -2.24% | 10.37% | 10.45% | 10.90% |
April 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-138,044K ÷ ($767,096K + $739,716K)
= -9.16%
The return on total capital for John Wiley & Sons has shown fluctuations over the past several reporting periods. The return on total capital was negative in some periods, indicating that the company's profits were not sufficient to cover the cost of both debt and equity capital. However, there were also periods where the return on total capital was positive, indicating that the company was able to generate returns above the cost of its capital.
The trend of the return on total capital over the recent periods shows a decline from the peak of 12.01% in April 2022 to -9.16% in April 2024. This decline may raise concerns about the company's ability to effectively utilize its capital to generate profits. It is also important to note the significant negative return on total capital in the most recent periods, which might indicate potential challenges in the company's operations or profitability.
Further analysis would be beneficial to understand the factors contributing to the fluctuations in the return on total capital and to assess the company's overall financial performance and efficiency in generating returns for its capital providers.
Peer comparison
Apr 30, 2024