BWX Technologies Inc (BWXT)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 380,607 | 367,964 | 350,358 | 431,054 | 392,660 |
| Long-term debt | US$ in thousands | 1,042,970 | 1,203,420 | 1,282,620 | 1,189,300 | 862,731 |
| Total stockholders’ equity | US$ in thousands | 1,080,680 | 933,351 | 748,310 | 637,175 | 617,766 |
| Return on total capital | 17.92% | 17.22% | 17.25% | 23.60% | 26.52% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $380,607K ÷ ($1,042,970K + $1,080,680K)
= 17.92%
BWXT Technologies Inc's return on total capital has exhibited a trend of slight decline over the years based on the provided data. The return on total capital decreased from 26.52% as of December 31, 2020, to 23.60% as of December 31, 2021, showing a notable decrease. Subsequently, there was a further decline to 17.25% as of December 31, 2022. The return on total capital remained relatively stable around 17% levels for the following years, with figures of 17.22% as of December 31, 2023, and 17.92% as of December 31, 2024.
The decrease in the return on total capital over the analyzed period may suggest challenges in generating returns relative to the total capital employed by the company. It indicates that the company may be experiencing inefficiencies in utilizing its total capital to generate profits. Further analysis and evaluation of the company's operational performance and capital utilization efficiency may be warranted to address this declining trend in return on total capital.
Peer comparison
Dec 31, 2024