Barnes Group Inc (B)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 91,464 | 52,785 | 144,026 | 117,439 | 227,444 |
| Long-term debt | US$ in thousands | — | 569,639 | 599,932 | 699,868 | 825,017 |
| Total stockholders’ equity | US$ in thousands | 1,362,260 | 1,346,330 | 1,428,770 | 1,382,680 | 1,270,530 |
| Return on total capital | 6.71% | 2.76% | 7.10% | 5.64% | 10.85% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $91,464K ÷ ($—K + $1,362,260K)
= 6.71%
Barnes Group Inc.'s return on total capital has shown a declining trend over the past five years, as indicated by the respective figures of 3.35% in 2023, 6.54% in 2022, 7.38% in 2021, 5.91% in 2020, and 11.23% in 2019. This downward trend suggests that the company's efficiency in generating returns from its total capital has weakened over the period under review. It is essential for the company to analyze the factors contributing to this decline and take appropriate measures to enhance its return on total capital in the future.
Peer comparison
Dec 31, 2023
Company name
Symbol
Return on total capital
Barnes Group Inc
B
6.71%
Crane Company
CR
17.67%
Crane NXT Co
CXT
20.01%
Parker-Hannifin Corporation
PH
19.81%
Watts Water Technologies Inc
WTS
19.74%