Dover Corporation (DOV)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 1,366,340 | 1,403,960 | 1,507,140 | 953,671 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,954,000 | 5,106,600 | 4,286,370 | 4,189,530 | 3,385,770 |
| Return on total capital | 0.00% | 26.76% | 32.75% | 35.97% | 28.17% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $6,954,000K)
= 0.00%
Dover Corporation's return on total capital has exhibited fluctuations over the years. The ratio increased from 28.17% as of December 31, 2020, to 35.97% by December 31, 2021, indicating improved efficiency in generating returns from its total capital employed. However, in the following year, the return on total capital decreased to 32.75% as of December 31, 2022.
This was followed by a further decline to 26.76% by December 31, 2023, suggesting a potential decrease in overall profitability relative to the capital invested. Notably, the return on total capital significantly dropped to 0.00% by December 31, 2024, indicating that the company may not have generated any returns on its total capital during that period.
Overall, the trend in Dover Corporation's return on total capital shows variability, with a general pattern of fluctuations and a significant decline in the most recent year, which may require further investigation into the company's operational performance and capital allocation strategies.
Peer comparison
Dec 31, 2024