Alamo Group Inc (ALG)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 170,176 | 201,213 | 148,592 | 116,938 | 99,585 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,018,250 | 932,763 | 785,360 | 705,663 | 625,643 |
| Return on total capital | 16.71% | 21.57% | 18.92% | 16.57% | 15.92% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $170,176K ÷ ($—K + $1,018,250K)
= 16.71%
Alamo Group Inc's return on total capital has shown a positive trend over the period from December 31, 2020, to December 31, 2024. The ratio increased from 15.92% in 2020 to 16.57% in 2021, further improving to 18.92% in 2022, and notably peaking at 21.57% in 2023. However, there was a slight decline to 16.71% in 2024. Overall, the company's return on total capital demonstrates consistent growth, indicating efficient utilization of both debt and equity to generate profits. The significant increase in 2023 suggests successful deployment of capital resources, but the slight decrease in 2024 may warrant further investigation into the factors contributing to this fluctuation.
Peer comparison
Dec 31, 2024