DXP Enterprises Inc (DXPE)

Return on total capital

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 148,898 140,798 135,972 135,307 119,152 111,622 101,974 89,333 95,412 78,671 65,332 55,097 40,737 28,199 -24,602 -32,828 -27,742 -15,883 47,025 63,067
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 422,788 402,368 384,681 375,464 380,879 363,576 369,465 374,284 365,392 386,497 375,586 360,187 358,639 361,132 344,861 352,354 347,068 322,641 356,823 351,136
Return on total capital 35.22% 34.99% 35.35% 36.04% 31.28% 30.70% 27.60% 23.87% 26.11% 20.35% 17.39% 15.30% 11.36% 7.81% -7.13% -9.32% -7.99% -4.92% 13.18% 17.96%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $148,898K ÷ ($—K + $422,788K)
= 35.22%

DXP Enterprises Inc's return on total capital has shown significant fluctuations over the past few years. The ratio started positively at 17.96% as of March 31, 2020, but then experienced a decline, reaching negative values by September 30, 2020. The negative trend continued through March 31, 2021, before starting to improve.

From June 30, 2021, onwards, there was a consistent increase in return on total capital, reaching 35.22% as of December 31, 2024. This upward trend indicates that the company has been effectively utilizing its total capital to generate higher returns for its investors.

The latest figure of 35.22% as of December 31, 2024, suggests that DXP Enterprises Inc has been able to efficiently deploy its capital to generate returns, reflecting positively on the company's financial performance and profitability. Maintaining this trend would be vital for the company's long-term growth and sustainability.


Peer comparison

Dec 31, 2024

Company name
Symbol
Return on total capital
DXP Enterprises Inc
DXPE
35.22%
MSC Industrial Direct Company Inc
MSM
22.85%