Allegion PLC (ALLE)
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 | 800,800 | 773,100 | 742,700 | 714,800 | 710,300 | 714,400 | 678,200 | 642,500 | 590,400 | 564,200 | 560,500 | 558,600 | 574,200 | 554,600 | 574,100 | 526,400 | 416,500 | 409,400 | 402,900 | 447,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,500,700 | 1,571,000 | 1,425,300 | 1,350,900 | 1,318,300 | 1,232,100 | 1,140,500 | 1,041,700 | 944,500 | 793,600 | 776,900 | 741,600 | 762,400 | 864,200 | 784,000 | 727,700 | 829,400 | 824,300 | 677,500 | 611,300 |
| Return on total capital | 53.36% | 49.21% | 52.11% | 52.91% | 53.88% | 57.98% | 59.47% | 61.68% | 62.51% | 71.09% | 72.15% | 75.32% | 75.31% | 64.17% | 73.23% | 72.34% | 50.22% | 49.67% | 59.47% | 73.12% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $800,800K ÷ ($—K + $1,500,700K)
= 53.36%
Allegion PLC's return on total capital has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at a high of 73.12% on March 31, 2020, then decreased to 49.67% by September 30, 2020, before gradually increasing again. Notably, the return on total capital reached its peak at 75.32% on March 31, 2022, and remained relatively stable above 70% for the subsequent quarters.
However, from September 30, 2023, onwards, there was a downward trend in the return on total capital, dropping to 49.21% on September 30, 2024. The ratio then experienced a slight recovery to 53.36% by December 31, 2024.
Overall, Allegion PLC has demonstrated strong returns on total capital, with periodic fluctuations reflecting changes in the company's efficiency in generating profits relative to the total capital employed. The management may need to monitor these fluctuations closely to ensure the sustainable productivity and profitability of the business.