Carlisle Companies Incorporated (CSL)
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 | 1,184,200 | 1,006,000 | 1,232,100 | 562,800 | 480,800 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,463,300 | 2,829,000 | 3,024,400 | 2,629,500 | 2,537,700 |
| Return on total capital | 48.07% | 35.56% | 40.74% | 21.40% | 18.95% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,184,200K ÷ ($—K + $2,463,300K)
= 48.07%
Based on the provided data, Carlisle Companies Incorporated has shown a significant improvement in its return on total capital over the years. The return on total capital increased from 18.95% as of December 31, 2020, to 48.07% as of December 31, 2024. This upward trend indicates that the company has been utilizing its total capital more effectively to generate profits and create value for its stakeholders.
The remarkable increase in return on total capital signifies that Carlisle Companies Incorporated has been able to generate higher profits relative to the total capital employed in the business. This could be due to various factors such as improved operational efficiency, effective capital allocation, strategic investments, or successful business expansion initiatives.
It is essential for investors, analysts, and stakeholders to closely monitor the return on total capital trend as it reflects the company's ability to generate returns on all capital invested, including both debt and equity. A consistently high return on total capital indicates a strong and sustainable financial performance, which can be a positive signal for the company's overall financial health and long-term growth prospects.
Overall, the increasing trend in Carlisle Companies Incorporated's return on total capital demonstrates the company's ability to efficiently utilize its resources and generate attractive returns for its investors.
Peer comparison
Dec 31, 2024