Deere & Company (DE)
Return on total capital
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 12,554,000 | 12,542,000 | 15,472,000 | 15,490,000 | 10,189,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 22,836,000 | 22,836,000 | 21,785,000 | 21,785,000 | 20,262,000 |
| Return on total capital | 54.97% | 54.92% | 71.02% | 71.10% | 50.29% |
October 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $12,554,000K ÷ ($—K + $22,836,000K)
= 54.97%
Deere & Company's return on total capital has shown a positive trend over the past few years. As of October 31, 2022, the company achieved a return on total capital of 50.29%, which increased to 71.10% by October 29, 2023. The trend continued with a slight decrease to 71.02% on October 31, 2023, followed by a dip to 54.92% by October 27, 2024. Most recently, as of October 31, 2024, the return on total capital improved slightly to 54.97%.
Overall, the return on total capital for Deere & Company indicates strong performance in efficiently utilizing both equity and debt capital to generate profits. The fluctuations observed in the ratios suggest some variability in the company's capital efficiency over the years, which may be influenced by factors such as changes in the company's capital structure, profitability, or efficiency of asset utilization. Further analysis of the underlying factors contributing to these fluctuations would provide deeper insights into Deere & Company's financial performance and strategic decision-making.
Peer comparison
Oct 31, 2024