Enerpac Tool Group Corp (EPAC)
Return on total capital
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 121,587 | 83,922 | 30,660 | 51,113 | 24,181 |
| Long-term debt | US$ in thousands | 189,503 | 210,337 | 200,000 | 175,000 | 255,000 |
| Total stockholders’ equity | US$ in thousands | 391,979 | 326,620 | 318,611 | 412,198 | 359,226 |
| Return on total capital | 20.91% | 15.63% | 5.91% | 8.70% | 3.94% |
August 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $121,587K ÷ ($189,503K + $391,979K)
= 20.91%
Enerpac Tool Group Corp's return on total capital has shown an improving trend over the past five years. The company achieved a return on total capital of 20.91% as of August 31, 2024, which indicates that for every dollar invested in the business, the company generated a return of approximately 20.91 cents. This represents a significant increase from the 15.63% return in 2023.
The steady improvement in return on total capital reflects the company's ability to effectively utilize its total capital to generate profits. The strong performance in 2024 suggests that Enerpac Tool Group Corp has been able to enhance its operational efficiency and profitability.
Comparing the return on total capital for 2024 to previous years, we see substantial growth from 5.91% in 2022, 8.70% in 2021, and 3.94% in 2020. This upward trend indicates consistent progress in the company's capital management and operational performance.
Overall, the increasing return on total capital for Enerpac Tool Group Corp reflects positively on the company's financial health and efficiency in utilizing its capital to create value for stakeholders. It suggests that the company is generating substantial returns on its investments, which is a key indicator of financial strength and sustainable growth.
Peer comparison
Aug 31, 2024