Crane Company (CR)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 300,000 | |||
| Long-term debt | US$ in thousands | 248,500 | 250,300 | 262,300 | — |
| Total stockholders’ equity | US$ in thousands | 1,357,800 | 1,284,100 | 1,235,200 | 1,560,400 |
| Return on total capital | 18.68% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $300,000K ÷ ($248,500K + $1,357,800K)
= 18.68%
Based on the data provided, Crane Company's return on total capital was 18.68% as of December 31, 2023. This ratio indicates how effectively the company is generating returns from both its debt and equity investments. A return on total capital of 18.68% suggests that Crane Company is efficiently utilizing its capital to generate profits, which can be favorable for investors and lenders. It signifies the company's ability to generate earnings relative to the total capital employed in the business. The consistent or improving trend in the return on total capital over multiple quarters could indicate sound financial management and operational performance by Crane Company.
Peer comparison
Dec 31, 2023