Crane NXT Co (CXT)
Return on total capital
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 309,700 | 627,100 | 625,300 | 629,400 | 635,900 | 341,700 | 412,400 | 494,200 | 548,200 | 520,300 | 459,800 | 337,900 | 281,300 | 73,600 | 90,800 | 187,900 | 211,400 | 467,000 | 491,700 | 479,500 |
| Long-term debt | US$ in thousands | 469,500 | 416,900 | 445,000 | 880,700 | 543,700 | 843,200 | 842,900 | 842,700 | 842,400 | 842,200 | 843,400 | 843,200 | 842,900 | 842,700 | 842,500 | 842,200 | 842,000 | 934,900 | 940,300 | 940,200 |
| Total stockholders’ equity | US$ in thousands | 964,000 | 872,600 | 855,200 | 441,100 | 783,800 | 701,600 | 731,100 | 776,200 | 763,800 | 1,807,600 | 1,725,200 | 1,595,000 | 1,528,900 | 1,506,500 | 1,421,100 | 1,405,200 | 1,473,700 | 1,697,500 | 1,672,000 | 1,590,600 |
| Return on total capital | 21.60% | 48.63% | 48.09% | 47.62% | 47.90% | 22.12% | 26.20% | 30.53% | 34.13% | 19.64% | 17.90% | 13.86% | 11.86% | 3.13% | 4.01% | 8.36% | 9.13% | 17.74% | 18.82% | 18.95% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $309,700K ÷ ($469,500K + $964,000K)
= 21.60%
Crane NXT Co's return on total capital has exhibited some fluctuation over the past few quarters. The return on total capital ranged from a low of 3.13% in the first quarter of 2020 to a high of 48.63% in the second quarter of 2023. Overall, the return on total capital has shown an increasing trend since the beginning of 2021, with notable improvements in the third and fourth quarters of 2022 and the first quarter of 2023.
The company's return on total capital exceeded 20% in all quarters since the fourth quarter of 2021, indicating a strong performance in utilizing its capital resources to generate profits. The highest return on total capital was achieved in the second quarter of 2023 at 48.63%, showcasing a significant improvement in capital efficiency.
The consistent improvement in return on total capital demonstrates Crane NXT Co's ability to effectively deploy its capital to generate returns for its stakeholders. Investors and analysts may view the increasing trend in return on total capital positively as it reflects the company's efficient use of capital resources to drive profitability and value creation.
Peer comparison
Dec 31, 2023