Advanced Drainage Systems Inc (WMS)
Return on total capital
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 675,547 | 690,176 | 714,298 | 718,126 | 723,766 | 714,056 | 682,417 | 701,740 | 721,503 | 676,661 | 666,302 | 559,479 | 416,824 | 369,106 | 357,129 | 368,687 | 368,357 | 356,202 | 301,095 | 264,708 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 92,652 | 1,546,280 | 1,474,690 | 1,366,880 | 1,261,900 | 1,200,250 | 1,162,760 | 1,093,070 | 977,367 | 1,098,130 | 1,198,340 | 1,178,820 | 1,088,420 | 1,005,140 | 916,737 | 1,011,370 | 1,049,700 | 1,013,740 | 942,613 | 852,230 |
| Return on total capital | 729.12% | 44.63% | 48.44% | 52.54% | 57.36% | 59.49% | 58.69% | 64.20% | 73.82% | 61.62% | 55.60% | 47.46% | 38.30% | 36.72% | 38.96% | 36.45% | 35.09% | 35.14% | 31.94% | 31.06% |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $675,547K ÷ ($—K + $92,652K)
= 729.12%
Based on the provided data, Advanced Drainage Systems Inc's return on total capital has shown a fluctuating trend over the past few years. The return on total capital was 31.06% as of June 30, 2020, and experienced a gradual increase reaching 38.96% by September 30, 2021. Subsequently, there was a slight dip to 36.72% by December 31, 2021, before trending upwards again to reach a peak of 73.82% by March 31, 2023.
Following this peak, the return on total capital exhibited some volatility, with values ranging from 52.54% on June 30, 2024, to a significant increase to 729.12% by March 31, 2025. Such a substantial spike in the return on total capital in the last reported period may be due to specific factors like significant asset sales, one-time gains, or changes in capital structure.
Overall, the return on total capital for Advanced Drainage Systems Inc has demonstrated both growth and volatility, indicating the company's ability to generate returns relative to the total capital employed in its operations. It would be essential to further investigate the reasons behind these fluctuations to understand the company's financial performance and capital allocation strategies.