Curtiss-Wright Corporation (CW)
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 | 514,463 | 436,175 | 394,750 | 298,596 | 427,809 |
| Long-term debt | US$ in thousands | 1,050,360 | 1,051,900 | 1,050,610 | 958,292 | 760,639 |
| Total stockholders’ equity | US$ in thousands | 2,328,410 | 1,981,210 | 1,826,490 | 1,787,570 | 1,774,370 |
| Return on total capital | 15.23% | 14.38% | 13.72% | 10.87% | 16.88% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $514,463K ÷ ($1,050,360K + $2,328,410K)
= 15.23%
Curtiss-Wright Corp.'s return on total capital has exhibited fluctuations over the past five years. In 2023, the return on total capital increased to 14.34% from 13.19% in 2022, indicating an improvement in the company's ability to generate profits from its invested capital. This rise suggests that the company has become more efficient in utilizing its total capital to generate returns for its stakeholders.
Comparing the 2023 return on total capital to earlier years, it surpasses the figures recorded in 2020 and 2021, indicating a positive trend in the company's capital efficiency. However, it falls short of the return achieved in 2019, which was notably higher at 15.93%.
Overall, the upward trend in the return on total capital from 2020 to 2023 reflects positively on Curtiss-Wright Corp.'s operational performance and capital management effectiveness. It suggests that the company has been successful in generating increased returns relative to the total capital employed in its operations, benefiting both the company and its investors.
Peer comparison
Dec 31, 2023