DXP Enterprises Inc (DXPE)
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 | 140,076 | 131,286 | 122,523 | 109,822 | 95,090 | 79,193 | 65,158 | 55,277 | 41,016 | 28,220 | -24,661 | -32,734 | -27,394 | -14,449 | 48,309 | 64,013 | 66,751 | 79,726 | 74,756 | 73,798 |
| Long-term debt | US$ in thousands | 520,697 | 408,105 | 408,430 | 408,755 | 409,205 | 313,739 | 314,663 | 315,030 | 315,397 | 315,920 | 316,343 | 316,741 | 317,139 | 209,813 | 220,107 | 235,263 | 235,419 | 235,576 | 236,202 | 236,591 |
| Total stockholders’ equity | US$ in thousands | 380,879 | 363,576 | 369,465 | 374,284 | 365,392 | 386,497 | 375,586 | 360,187 | 346,674 | 361,132 | 353,712 | 361,826 | 360,338 | 322,641 | 356,823 | 351,136 | 353,786 | 341,157 | 329,017 | 315,279 |
| Return on total capital | 15.54% | 17.01% | 15.75% | 14.03% | 12.28% | 11.31% | 9.44% | 8.19% | 6.20% | 4.17% | -3.68% | -4.82% | -4.04% | -2.71% | 8.37% | 10.92% | 11.33% | 13.82% | 13.23% | 13.37% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $140,076K ÷ ($520,697K + $380,879K)
= 15.54%
DXP Enterprises Inc's return on total capital has shown a generally positive trend over the past five quarters, with the ratio increasing from -4.82% in March 2021 to 17.01% in September 2023. This indicates that the company has been able to generate more income relative to the amount of capital invested in its operations.
The return on total capital peaked at 17.01% in September 2023, reflecting the company's ability to efficiently utilize its total capital to generate profits. The trend suggests that DXP Enterprises Inc has been improving its capital efficiency and profitability over this period.
Overall, the increasing trend in return on total capital is a positive indicator of the company's financial performance and management effectiveness in utilizing its capital resources to generate returns for investors.
Peer comparison
Dec 31, 2023