Alamo Group Inc (ALG)
Return on total capital
| 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 168,828 | 175,695 | 184,839 | 195,922 | 197,967 | 195,886 | 183,479 | 169,926 | 148,341 | 133,491 | 126,520 | 122,817 | 120,474 | 107,453 | 116,077 | 100,620 | 102,077 | 116,423 | 102,679 | 110,384 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,018,250 | 1,017,720 | 979,716 | 956,556 | 932,763 | 887,734 | 865,942 | 822,348 | 785,360 | 737,031 | 736,442 | 727,180 | 705,663 | 691,662 | 671,881 | 641,881 | 625,643 | 605,213 | 577,151 | 560,409 |
| Return on total capital | 16.58% | 17.26% | 18.87% | 20.48% | 21.22% | 22.07% | 21.19% | 20.66% | 18.89% | 18.11% | 17.18% | 16.89% | 17.07% | 15.54% | 17.28% | 15.68% | 16.32% | 19.24% | 17.79% | 19.70% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $168,828K ÷ ($—K + $1,018,250K)
= 16.58%
Alamo Group Inc's return on total capital has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The return on total capital ranged from a high of 22.07% on September 30, 2023, to a low of 15.54% on September 30, 2021. Overall, Alamo Group Inc's return on total capital hovered around the 17-18% range in recent periods. This indicates that the company has been effectively generating returns from its total capital investments, albeit with some variability. It is important for stakeholders to monitor this metric closely to assess the company's efficiency in utilizing its capital resources for generating profits.
Peer comparison
Dec 31, 2024