Deere & Company (DE)
Return on total capital
| Jan 31, 2025 | Oct 31, 2024 | Oct 27, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 9,672,000 | 11,147,000 | 12,711,000 | 14,304,000 | 14,126,000 | 13,949,000 | 13,851,000 | 13,752,000 | 14,964,000 | 16,179,000 | 16,741,000 | 15,855,000 | 14,601,000 | 13,598,000 | 12,419,000 | 12,282,000 | 12,053,000 | 11,558,000 | 9,700,000 | 8,247,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 32,447,000 |
| Total stockholders’ equity | US$ in thousands | 22,479,000 | 22,836,000 | 22,836,000 | 23,062,000 | 23,062,000 | 22,684,000 | 22,684,000 | 22,075,000 | 22,075,000 | 21,785,000 | 21,785,000 | 23,048,000 | 23,048,000 | 22,395,000 | 21,332,000 | 21,332,000 | 20,262,000 | 20,262,000 | 19,033,000 | 18,904,000 |
| Return on total capital | 43.03% | 48.81% | 55.66% | 62.02% | 61.25% | 61.49% | 61.06% | 62.30% | 67.79% | 74.27% | 76.85% | 68.79% | 63.35% | 60.72% | 58.22% | 57.58% | 59.49% | 57.04% | 50.96% | 16.06% |
January 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $9,672,000K ÷ ($—K + $22,479,000K)
= 43.03%
The return on total capital for Deere & Company has exhibited significant fluctuations over the reported periods. Starting at 16.06% on May 1, 2022, the figure surged to 68.79% by July 31, 2023. This sharp increase indicates an improvement in the company's profitability and efficiency in utilizing its total capital to generate returns.
However, the return on total capital experienced a decline in the subsequent periods, dropping to 43.03% by January 31, 2025. This decrease suggests a potential decrease in the company's ability to generate profits relative to its total invested capital.
It is important for stakeholders to closely monitor the trend in return on total capital to assess the company's overall financial performance and efficiency in capital allocation. Further analysis and comparison with industry benchmarks are recommended to gain a deeper understanding of Deere & Company's financial health.
Peer comparison
Jan 31, 2025