John Wiley & Sons (WLY)
Return on total capital
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 173,026 | 198,648 | 70,643 | 2,350 | -127,644 | -94,389 | -64,644 | -1,389 | 74,045 | 30,658 | 144,910 | 162,160 | 227,856 | 227,303 | 211,226 | 208,588 | 194,295 | -21,980 | -3,244 | -12,958 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 752,206 | 685,244 | 755,255 | 713,673 | 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 |
| Return on total capital | 23.00% | 28.99% | 9.35% | 0.33% | -17.26% | -12.61% | -7.45% | -0.15% | 7.09% | 2.99% | 13.44% | 14.98% | 19.95% | 20.30% | 19.09% | 19.35% | 17.80% | -2.07% | -0.32% | -1.33% |
April 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $173,026K ÷ ($—K + $752,206K)
= 23.00%
The analysis of John Wiley & Sons' return on total capital over the specified period reveals significant fluctuations, reflecting the company's changing profitability and capital efficiency.
Initially, the company experienced negative return on total capital from July 31, 2020, through April 30, 2021, with values ranging from -1.33% to -2.07%. This period indicates that the company was not generating sufficient earnings relative to its total capital, possibly due to operational challenges or strategic positioning during that timeframe.
A marked turnaround occurred in the period ending April 30, 2021, when the return became notably positive at 17.80%. This improvement continued into the subsequent quarters, reaching 19.35% in July 2021 and maintaining above 19% through October 31, 2021, and January 31, 2022. These elevated levels suggest effective utilization of capital and robust operational performance during this period.
Mid-2022, the return remained strong, with values close to 15-20%, indicating sustained profitability. However, beginning in July 2022, a declining trend emerged, with the return decreasing to 14.98% and subsequently to 13.44% by October 31, 2022. The downward trajectory persisted into early 2023, with a sharp decline to 2.99% in January 2023, followed by further reductions in April 2023 (7.09%), July 2023 (-0.15%), and October 2023 (-7.45%).
From late 2023 onwards, the return on total capital entered a negative territory, reaching -12.61% in January 2024 and -17.26% in April 2024. This indicates a period of substantial underperformance or increased capital costs not being offset by earnings. Interestingly, a reversal was observed in July 2024 with a marginal positive return of 0.33%, followed by a significant rebound to 9.35% in October 2024. The most pronounced recovery is noted in the subsequent periods, with the return escalating to 28.99% in January 2025 and 23.00% in April 2025, suggesting a strong resurgence in profitability and efficient capital deployment.
Overall, the trend exhibits cyclical behavior characterized by periods of substantial earnings, sharp declines, and recent robust recovery, highlighting the company's dynamic operational environment and possible strategic shifts impacting overall capital productivity.
Peer comparison
Apr 30, 2025