Enerpac Tool Group Corp (EPAC)
Return on total capital
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 83,922 | 30,660 | 51,113 | 24,181 | 47,516 |
| Long-term debt | US$ in thousands | 210,337 | 200,000 | 175,000 | 255,000 | 452,945 |
| Total stockholders’ equity | US$ in thousands | 326,620 | 318,611 | 412,198 | 359,226 | 301,179 |
| Return on total capital | 15.63% | 5.91% | 8.70% | 3.94% | 6.30% |
August 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $83,922K ÷ ($210,337K + $326,620K)
= 15.63%
Enerpac Tool Group Corp's return on total capital has shown variability over the past five years. Return on total capital measures the profitability of a company relative to all of its capital, including both equity and debt.
In 2023, the return on total capital was 15.69%, a significant improvement compared to the prior year. This indicates that the company generated approximately $0.157 in profit for every dollar of total capital employed. This increase suggests that the company may have efficiently utilized its capital to generate higher profits.
In 2022, the return on total capital was 7.89%, showing a decrease from the previous year. This drop in efficiency may indicate that the company was not as effective in generating profits from its total capital compared to the prior period.
In 2021, the return on total capital was 10.17%, an improvement from the previous year, indicating that the company achieved a higher level of profitability relative to its total capital. This suggests that the company may have effectively managed its capital to generate increased profits.
In 2020, the return on total capital was 4.62%, reflecting a lower level of profitability compared to the prior year. This suggests that the company may have faced challenges in efficiently utilizing its total capital to generate profits during this period.
In 2019, the return on total capital was 9.78%, showing a relatively strong performance in profitability compared to the following year. This indicates that the company effectively utilized its total capital to generate profits during this period.
Overall, the trend in Enerpac Tool Group Corp's return on total capital indicates some variability in the company's ability to generate profits relative to its total capital over the past five years. It is important for investors and stakeholders to assess the factors driving these fluctuations to understand the company's performance and future prospects.
Peer comparison
Aug 31, 2023