Topbuild Corp (BLD)
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 | 900,099 | 891,268 | 870,332 | 835,566 | 798,850 | 712,412 | 623,713 | 545,123 | 462,587 | 447,488 | 415,225 | 367,416 | 355,542 | 329,367 | 308,856 | 304,878 | 291,601 | 280,041 | 265,338 | 232,536 |
| Long-term debt | US$ in thousands | 1,373,030 | 1,383,720 | 1,394,790 | 1,405,930 | 1,417,260 | 1,428,940 | 1,437,100 | 1,445,470 | 1,454,480 | 675,567 | 680,999 | 686,493 | 683,396 | 688,870 | 694,320 | 699,750 | 697,955 | 701,955 | 705,626 | 709,172 |
| Total stockholders’ equity | US$ in thousands | 2,563,660 | 2,407,830 | 2,238,050 | 2,065,140 | 1,929,710 | 1,834,440 | 1,742,660 | 1,697,240 | 1,636,430 | 1,561,710 | 1,474,820 | 1,396,360 | 1,348,790 | 1,281,590 | 1,217,650 | 1,179,820 | 1,152,890 | 1,165,210 | 1,141,650 | 1,102,850 |
| Return on total capital | 22.86% | 23.51% | 23.96% | 24.07% | 23.87% | 21.83% | 19.62% | 17.35% | 14.97% | 20.00% | 19.26% | 17.64% | 17.50% | 16.72% | 16.15% | 16.22% | 15.76% | 15.00% | 14.36% | 12.83% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $900,099K ÷ ($1,373,030K + $2,563,660K)
= 22.86%
Over the past eight quarters, TopBuild Corp has consistently delivered strong returns on total capital, ranging from 17.06% to 23.65%. The trend shows an improving performance, with the most recent quarter achieving the highest return of 23.65%. This indicates that the company has been effectively utilizing its capital to generate profits for shareholders. The increasing trend suggests that TopBuild Corp's management is efficient in deploying its resources to drive profitability and create value for its stakeholders. This consistent and upward trend in return on total capital reflects positively on the company's overall financial health and operational effectiveness.