DXP Enterprises Inc (DXPE)
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 | 148,899 | 139,322 | 95,036 | 40,271 | -27,742 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 422,788 | 380,879 | 365,392 | 358,639 | 347,068 |
| Return on total capital | 35.22% | 36.58% | 26.01% | 11.23% | -7.99% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $148,899K ÷ ($—K + $422,788K)
= 35.22%
Based on the data provided, DXP Enterprises Inc's return on total capital has shown significant improvement over the years. After recording a negative return of -7.99% on December 31, 2020, the company managed to turn things around and achieve a positive return of 11.23% by the end of 2021. Subsequently, the return continued to increase, reaching 26.01% in 2022, 36.58% in 2023, and 35.22% in 2024.
This positive trend indicates that DXP Enterprises Inc has been effectively utilizing its total capital to generate returns for its investors. The consistent improvement in return on total capital reflects the company's ability to efficiently allocate its resources and generate profits, which could be attributed to effective financial management and strategic decision-making. Overall, the increasing return on total capital suggests that DXP Enterprises Inc has been on a path of sustainable growth and profitability over the years.
Peer comparison
Dec 31, 2024