Allegion PLC (ALLE)

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	710,100	714,100	678,000	642,200	590,100	564,100	560,300	558,400	573,900	554,100	573,700	526,100	416,300	409,300	402,700	446,700	530,900	560,700	538,800	538,800
Long-term debt	US$ in thousands	1,602,400	2,005,100	2,046,700	2,109,300	2,081,900	2,214,500	2,018,100	1,426,800	1,429,500	1,192,500	1,430,300	1,429,800	1,429,400	1,428,900	1,428,500	1,428,000	1,427,600	1,427,000	1,393,100	1,401,300
Total stockholders’ equity	US$ in thousands	1,318,300	1,232,100	1,138,600	1,041,700	941,800	791,300	776,900	741,600	759,100	864,200	784,000	727,700	829,400	824,300	677,500	611,300	757,400	685,000	660,500	633,700
Return on total capital		24.31%	22.06%	21.29%	20.38%	19.52%	18.77%	20.05%	25.75%	26.22%	26.94%	25.91%	24.38%	18.43%	18.17%	19.12%	21.90%	24.30%	26.55%	26.24%	26.48%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $710,100K ÷ ($1,602,400K + $1,318,300K)
= 24.31%

Allegion plc's return on total capital has shown a positive trend over the last eight quarters, with the figures ranging from 17.99% to 23.98%. The company's return on total capital peaked at 23.98% in Q1 2022 before experiencing a slight decline in the following quarters. Despite this, the return on total capital remained above 20% throughout the period, indicating efficient utilization of both debt and equity in generating profits. Overall, the consistent performance of Allegion plc in generating returns on total capital reflects strong financial management and effective deployment of resources.