Astec Industries Inc (ASTE)
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 | 51,500 | 35,600 | 42,400 | 20,500 | 7,400 | -8,300 | -4,000 | 10,700 | 14,800 | 45,300 | 39,400 | 40,100 | 46,100 | 481 | 3,880 | 23,472 | 26,701 | -15,956 | -12,410 | -92,311 |
| Long-term debt | US$ in thousands | 72,000 | 2,400 | 2,400 | 2,200 | 78,100 | 3,000 | 3,200 | 1,200 | 200 | 500 | 500 | 400 | 400 | 380 | 431 | 493 | 700 | 717 | 28,891 | 56,629 |
| Total stockholders’ equity | US$ in thousands | 653,400 | 634,500 | 647,300 | 635,500 | 626,900 | 627,700 | 643,300 | 656,800 | 650,800 | 662,700 | 658,800 | 646,600 | 642,500 | 622,901 | 621,539 | 612,203 | 601,900 | 617,060 | 619,979 | 598,619 |
| Return on total capital | 7.10% | 5.59% | 6.53% | 3.21% | 1.05% | -1.32% | -0.62% | 1.63% | 2.27% | 6.83% | 5.98% | 6.20% | 7.17% | 0.08% | 0.62% | 3.83% | 4.43% | -2.58% | -1.91% | -14.09% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $51,500K ÷ ($72,000K + $653,400K)
= 7.10%
Astec Industries Inc.'s return on total capital has shown a generally increasing trend in recent quarters, as indicated by the data provided. The company's return on total capital has improved from 2.31% in Q4 2022 to 7.39% in Q4 2023. This upward trajectory suggests that the company is becoming more efficient in generating profits from its total capital employed.
It is notable that the return on total capital fluctuated within a range of 4.41% to 7.39% in the most recent quarters, indicating some level of volatility in the company's performance. Despite this fluctuation, the return on total capital has remained above 5% consistently since Q3 2022, highlighting the company's ability to generate returns above its cost of capital.
Overall, Astec Industries Inc.'s increasing return on total capital signifies improving profitability and efficiency in utilizing its total capital base. However, the fluctuations in the ratio suggest that the company may need to continue monitoring and optimizing its capital allocation strategies to sustain and potentially enhance its performance in the future.
Peer comparison
Dec 31, 2023