Topbuild Corp (BLD)
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 | 897,625 | 893,705 | 893,219 | 924,535 | 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 |
| Long-term debt | US$ in thousands | 1,327,160 | 1,341,440 | 1,351,970 | 1,362,500 | 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 |
| Total stockholders’ equity | US$ in thousands | 2,209,620 | 2,114,270 | 2,357,310 | 2,712,030 | 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 |
| Return on total capital | 25.38% | 25.86% | 24.08% | 22.69% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $897,625K ÷ ($1,327,160K + $2,209,620K)
= 25.38%
Topbuild Corp's return on total capital has shown a generally positive trend over the analysis period, starting at 16.22% in March 2020 and gradually increasing to 25.38% by December 2024. This indicates the company's ability to generate profits from its total capital employed has improved over time.
There are fluctuations in the return on total capital throughout the period, with some quarters showing higher returns than others. For example, the return peaked at 25.86% in September 2024, while the lowest return was recorded at 14.97% in December 2021. These fluctuations may be influenced by various factors such as changes in business operations, economic conditions, or strategic decisions made by the company.
Overall, the increasing trend in return on total capital is a positive indicator of Topbuild Corp's financial performance and efficiency in utilizing its capital to generate returns for its investors and stakeholders.