Crane NXT Co (CXT)
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 | 286,800 | 615,200 | 549,700 | 279,700 | 211,400 |
| Long-term debt | US$ in thousands | 469,500 | 543,700 | 842,400 | 842,900 | 842,000 |
| Total stockholders’ equity | US$ in thousands | 964,000 | 783,800 | 763,800 | 1,528,900 | 1,473,700 |
| Return on total capital | 20.01% | 46.34% | 34.22% | 11.79% | 9.13% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $286,800K ÷ ($469,500K + $964,000K)
= 20.01%
Crane NXT Co's return on total capital has fluctuated over the past five years, indicating varying levels of efficiency in utilizing both debt and equity in generating profits. The significant increase from 2019 to 2020 suggests improved performance in capital utilization, with a notable spike in 2022 achieving a return of 46.34%. However, the return decreased in 2023 to 20.01%, indicating a potential decline in profitability or changes in the company's capital structure. Further analysis of the underlying factors influencing these fluctuations would be necessary to assess the company's overall financial health and strategic direction.
Peer comparison
Dec 31, 2023