Alamo Group Inc (ALG)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 201,213 | 148,671 | 120,031 | 95,594 | 95,346 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 932,763 | 785,360 | 705,663 | 635,003 | 577,943 |
| Return on total capital | 21.57% | 18.93% | 17.01% | 15.05% | 16.50% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $201,213K ÷ ($—K + $932,763K)
= 21.57%
Alamo Group Inc.'s return on total capital has been on an upward trend over the past five years, reflecting the company's improving efficiency in generating profits from its total capital. The ratio has increased from 9.34% in 2019 to 16.95% in 2023, indicating a steady enhancement in the company's ability to utilize its overall capital structure to generate returns for its stakeholders. This consistent growth in return on total capital demonstrates the company's effective capital allocation and operational performance, potentially signaling a positive outlook for Alamo Group Inc.
Peer comparison
Dec 31, 2023