Carpenter Technology Corporation (CRS)
Return on total capital
| Jun 30, 2025 | Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 368,800 | 476,800 | 425,100 | 374,100 | 326,100 | 283,100 | 233,500 | 187,300 | 127,600 | 81,400 | 45,600 | 700 | -20,000 | -108,500 | -157,600 | -220,500 | -256,600 | -331,000 | -224,800 | -80,500 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,887,000 | 1,781,700 | 1,716,900 | 1,660,300 | 1,628,800 | 1,502,600 | 1,473,800 | 1,429,300 | 1,396,100 | 1,327,200 | 1,321,100 | 1,306,800 | 1,330,500 | 1,347,100 | 1,333,100 | 1,367,600 | 1,392,300 | 1,381,200 | 1,332,900 | 1,407,500 |
| Return on total capital | 19.54% | 26.76% | 24.76% | 22.53% | 20.02% | 18.84% | 15.84% | 13.10% | 9.14% | 6.13% | 3.45% | 0.05% | -1.50% | -8.05% | -11.82% | -16.12% | -18.43% | -23.96% | -16.87% | -5.72% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $368,800K ÷ ($—K + $1,887,000K)
= 19.54%
The analysis of Carpenter Technology Corporation's return on total capital (ROTC) over the period from September 30, 2020, through June 30, 2025, reveals a significant and consistent trend of improvement.
Initially, the company experienced negative ROTC values, indicating that it was not generating sufficient returns on its total capital during the latter part of 2020 and early 2021. Specifically, the ROTC was recorded at -5.72% as of September 30, 2020, deepening to -23.96% by March 31, 2021, reflecting periods of underperformance and potential challenges in operational efficiency or market conditions.
Subsequent periods show a gradual transition from negative to positive ROTC figures. From December 31, 2021, onward, CARPENTER's ROTC moved steadily upward, reaching the break-even point at approximately 0.05% as of September 30, 2022. This positive trajectory indicates an enhancement in the company's ability to generate returns on its total capital employed.
The upward trend accelerated further into 2023 and beyond, with ROTC escalating to 6.13% by March 31, 2023, and continuing to increase sharply through 2024, reaching 24.76% on December 31, 2024. This substantial improvement suggests successful operational strategies, enhancements in profitability, or favorable market conditions contributing to higher efficiency in capital utilization.
By June 30, 2025, the ROTC persisted at a high level of around 19.54%, though there was a slight decline from the previous quarter, which could be indicative of short-term variations or adjustments in capital deployment.
Overall, the data illustrates a pronounced and sustained recovery in Carpenter Technology Corporation’s capacity to generate returns on its total capital. The transition from negative to high positive returns underscores the company's strategic improvements and operational efficiencies achieved over this period, indicating a strengthening financial position and value generation capability.
Peer comparison
Jun 30, 2025