Alamo Group Inc (ALG)
Return on total capital
| 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 201,213 | 197,435 | 184,505 | 171,641 | 148,671 | 133,048 | 126,077 | 122,374 | 120,031 | 107,899 | 108,420 | 92,963 | 94,420 | 97,447 | 91,607 | 99,312 | 95,149 | 100,640 | 103,668 | 101,087 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 150,000 | 166,000 | 180,000 |
| Total stockholders’ equity | US$ in thousands | 932,763 | 887,734 | 865,942 | 822,348 | 785,360 | 737,031 | 736,442 | 727,180 | 705,663 | 691,662 | 681,241 | 651,241 | 635,003 | 605,213 | 577,151 | 560,409 | 577,943 | 551,052 | 542,832 | 521,484 |
| Return on total capital | 21.57% | 22.24% | 21.31% | 20.87% | 18.93% | 18.05% | 17.12% | 16.83% | 17.01% | 15.60% | 15.92% | 14.27% | 14.87% | 16.10% | 15.87% | 17.72% | 16.46% | 14.36% | 14.63% | 14.41% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $201,213K ÷ ($—K + $932,763K)
= 21.57%
The return on total capital for Alamo Group Inc. has shown a positive trend over the past eight quarters, indicating an improving performance in utilizing its capital effectively to generate profits. The company has consistently increased its return on total capital from 10.97% in Q1 2022 to 16.95% in Q4 2023, reflecting a steady growth in efficiency and profitability.
This upward trend suggests that Alamo Group Inc. has been able to generate higher returns relative to the total capital employed in its operations. Investors and stakeholders may view this as a positive indicator of the company's ability to generate value from its investments and utilize its resources efficiently to drive profits.
Overall, the improving return on total capital for Alamo Group Inc. demonstrates the company's effective management of its capital structure and resources to enhance profitability and create value for its shareholders.
Peer comparison
Dec 31, 2023