Dover Corporation (DOV)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,401,310 | 1,403,960 | 1,507,140 | 953,671 | 968,827 |
| Long-term debt | US$ in thousands | 2,991,760 | 2,942,510 | 3,018,710 | 3,108,830 | 2,985,720 |
| Total stockholders’ equity | US$ in thousands | 5,106,600 | 4,286,370 | 4,189,530 | 3,385,770 | 3,032,660 |
| Return on total capital | 17.30% | 19.42% | 20.91% | 14.68% | 16.10% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,401,310K ÷ ($2,991,760K + $5,106,600K)
= 17.30%
Dover Corp.'s return on total capital has exhibited some fluctuations over the past five years. The company's return on total capital was 15.95% at the end of 2023, slightly lower than the prior year's figure of 17.32%. However, it should be noted that the return on total capital for 2023 remains relatively strong compared to the levels seen in 2020 and 2019, which were 14.37% and 16.74%, respectively.
Overall, while there has been some variability in Dover Corp.'s return on total capital in recent years, the company has generally maintained solid performance in generating returns from its total invested capital. It is important for stakeholders to closely monitor these trends to assess the company's efficiency in utilizing its capital resources effectively.
Peer comparison
Dec 31, 2023