BWX Technologies Inc (BWXT)
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 | 367,964 | 350,358 | 431,054 | 392,660 | 348,500 |
| Long-term debt | US$ in thousands | 1,203,420 | 1,282,620 | 1,189,300 | 862,731 | 809,442 |
| Total stockholders’ equity | US$ in thousands | 933,351 | 748,310 | 637,175 | 617,766 | 404,106 |
| Return on total capital | 17.22% | 17.25% | 23.60% | 26.52% | 28.72% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $367,964K ÷ ($1,203,420K + $933,351K)
= 17.22%
BWX Technologies Inc's return on total capital has shown a downward trend over the past five years. The return on total capital was 26.73% in 2019, which has gradually decreased to 17.92% in 2023. This decline indicates a decrease in the company's efficiency in generating profits from its total capital over the years.
A return on total capital of less than 20% may indicate that the company is not effectively utilizing its capital to generate profits. It is important for investors and stakeholders to closely monitor this ratio to ensure that the company is efficiently deploying its resources to generate returns for shareholders.
Further analysis and comparison with industry peers may provide additional insights into the company's performance and competitiveness in the market.
Peer comparison
Dec 31, 2023