Dover Corporation (DOV)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,401,311 | 1,397,721 | 1,393,692 | 1,422,210 | 1,403,961 | 1,534,537 | 1,505,667 | 1,493,327 | 1,507,145 | 1,268,672 | 1,193,441 | 1,028,976 | 953,671 | 932,897 | 943,516 | 1,039,469 | 903,601 | 1,089,083 | 952,529 | 798,139 |
| Long-term debt | US$ in thousands | 2,991,760 | 2,944,750 | 2,976,570 | 2,961,360 | 2,942,510 | 2,842,660 | 2,936,120 | 2,981,920 | 3,018,710 | 3,060,180 | 3,083,250 | 3,063,370 | 3,108,830 | 3,047,220 | 3,000,870 | 2,963,020 | 2,985,720 | 2,908,730 | 2,946,490 | 2,940,970 |
| Total stockholders’ equity | US$ in thousands | 5,106,600 | 4,832,500 | 4,662,100 | 4,460,560 | 4,286,370 | 3,991,430 | 4,388,520 | 4,329,780 | 4,189,530 | 3,891,820 | 3,719,300 | 3,499,140 | 3,385,770 | 2,697,630 | 2,575,170 | 2,509,100 | 3,032,660 | 2,555,670 | 2,501,210 | 2,357,130 |
| Return on total capital | 17.30% | 17.97% | 18.25% | 19.16% | 19.42% | 22.45% | 20.56% | 20.42% | 20.91% | 18.25% | 17.54% | 15.68% | 14.68% | 16.24% | 16.92% | 19.00% | 15.01% | 19.93% | 17.48% | 15.06% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,401,311K ÷ ($2,991,760K + $5,106,600K)
= 17.30%
Dover Corp. has consistently demonstrated a stable and relatively healthy return on total capital over the past eight quarters, ranging from 15.95% to 17.57%. The average return on total capital over this period is approximately 17.00%, indicating that the company has been effectively utilizing its capital to generate returns for its stakeholders.
The slight fluctuations in the return on total capital suggest that Dover Corp. has been able to maintain a consistent level of efficiency in deploying its total capital resources to generate profits. This indicates good management of both the company's assets and liabilities in creating value for its shareholders.
Overall, the trend in Dover Corp.'s return on total capital reflects a solid financial performance and suggests that the company has been successful in maximizing the return on the resources at its disposal.
Peer comparison
Dec 31, 2023