Advanced Drainage Systems Inc (WMS)
Return on total capital
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 732,131 | 722,385 | 693,606 | 713,154 | 719,310 | 674,456 | 660,283 | 554,259 | 411,918 | 364,031 | 336,680 | 346,693 | 344,525 | 318,394 | 276,451 | 212,096 | -95,349 | -95,403 | -111,520 | -121,990 |
| Long-term debt | US$ in thousands | 1,259,520 | 1,261,740 | 1,264,200 | 1,266,800 | 1,269,390 | 1,272,040 | 1,275,210 | 1,279,180 | 908,705 | 931,765 | 901,511 | 780,565 | 782,220 | 783,874 | 885,528 | 1,037,470 | 1,089,370 | 991,267 | 1,043,150 | 230,337 |
| Total stockholders’ equity | US$ in thousands | 1,153,310 | 1,078,560 | 1,029,410 | 944,672 | 824,147 | 940,998 | 1,038,410 | 989,996 | 893,039 | 799,399 | 695,219 | 791,779 | 819,784 | 772,205 | 696,520 | 602,306 | 525,723 | 531,422 | 498,178 | 199,126 |
| Return on total capital | 30.34% | 30.87% | 30.24% | 32.25% | 34.36% | 30.48% | 28.54% | 24.43% | 22.86% | 21.03% | 21.09% | 22.05% | 21.51% | 20.46% | 17.47% | 12.93% | -5.90% | -6.27% | -7.24% | -28.41% |
March 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $732,131K ÷ ($1,259,520K + $1,153,310K)
= 30.34%
The return on total capital for Advanced Drainage Systems Inc has been relatively stable over the past few quarters, ranging from a low of -28.41% in December 2019 to a high of 34.36% in March 2023. Overall, the company has shown a positive trend in return on total capital, with the most recent figure standing at 30.34% as of March 31, 2024. This indicates that the company is effectively generating profit from the capital invested in its operations. It is important for investors and stakeholders to continue monitoring this metric to assess the company's financial performance and efficiency in utilizing its capital resources.