Deere & Company (DE)
Return on total capital
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 15,537,000 | 15,490,000 | 14,870,000 | 13,467,000 | 11,793,000 | 10,200,000 | 8,785,000 | 8,353,000 | 8,195,000 | 8,616,000 | 8,158,000 | 7,314,000 | 5,979,000 | 5,079,000 | 4,927,000 | 4,863,000 | 5,439,000 | 5,571,000 | 5,669,000 | 5,665,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | 32,447,000 | 32,838,000 | 32,888,000 | 32,280,000 | 33,346,000 | 32,772,000 | 32,734,000 | 34,037,000 | 34,324,000 | 30,475,000 | — | 29,242,000 | 28,255,000 |
| Total stockholders’ equity | US$ in thousands | 22,075,000 | 21,785,000 | 23,048,000 | 22,395,000 | 21,332,000 | 20,262,000 | 19,033,000 | 18,904,000 | 17,804,000 | 18,431,000 | 15,731,000 | 15,092,000 | 14,083,000 | 12,937,000 | 12,888,000 | 11,864,000 | 11,926,000 | 11,413,000 | 12,266,000 | 11,919,000 |
| Return on total capital | 70.38% | 71.10% | 64.52% | 60.13% | 55.28% | 50.34% | 46.16% | 16.27% | 16.18% | 16.79% | 16.99% | 15.10% | 12.76% | 11.12% | 10.50% | 10.53% | 12.83% | 48.81% | 13.66% | 14.10% |
January 28, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $15,537,000K ÷ ($—K + $22,075,000K)
= 70.38%
Deere & Co.'s return on total capital has been relatively stable over the past eight quarters, ranging from 11.20% to 16.52%. The company's ability to generate returns on its total invested capital improved in the most recent quarter, reaching 15.33%, compared to the previous quarters. This indicates that Deere & Co. has been effective in utilizing its capital resources to generate profits for its stakeholders. The upward trend in return on total capital suggests improved efficiency and profitability in the company's operations. Overall, the consistent performance in this ratio reflects positively on Deere & Co.'s financial management and operational efficiency.
Peer comparison
Jan 28, 2024