Enerpac Tool Group Corp (EPAC)
Return on total capital
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 115,824 | 100,275 | 83,922 | 64,846 | 46,050 | 36,562 | 30,660 | 31,123 | 47,227 | 48,450 | 51,112 | 40,766 | 16,021 | 18,881 | 24,181 | 26,388 | 66,565 | 70,437 | 47,514 | 35,101 |
| Long-term debt | US$ in thousands | 239,920 | 240,128 | 210,337 | 231,545 | 206,754 | 200,359 | 200,000 | 205,000 | 175,000 | 175,000 | 175,000 | 195,000 | 210,000 | 255,000 | 255,000 | 286,497 | 286,367 | 286,236 | 452,945 | 468,984 |
| Total stockholders’ equity | US$ in thousands | 336,926 | 321,676 | 326,620 | 336,619 | 340,788 | 334,323 | 318,611 | 366,272 | 413,023 | 409,806 | 412,198 | 416,911 | 381,393 | 367,946 | 359,226 | 336,282 | 354,365 | 353,253 | 301,179 | 607,424 |
| Return on total capital | 20.08% | 17.85% | 15.63% | 11.41% | 8.41% | 6.84% | 5.91% | 5.45% | 8.03% | 8.28% | 8.70% | 6.66% | 2.71% | 3.03% | 3.94% | 4.24% | 10.39% | 11.01% | 6.30% | 3.26% |
February 29, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $115,824K ÷ ($239,920K + $336,926K)
= 20.08%
The return on total capital for Enerpac Tool Group Corp has shown a positive trend over the past several quarters, indicating an improvement in the company's ability to generate profits from its invested capital. The return on total capital has increased steadily from 3.26% in the November 2019 quarter to 20.08% in the February 2024 quarter. This suggests that the company has been more efficient in utilizing its capital to generate returns for its investors.
The return on total capital peaked at 20.08% in the most recent quarter, indicating a strong performance in generating profits relative to the capital invested. This signifies the company's ability to effectively allocate its resources and generate profitable returns for its stakeholders.
Overall, the increasing trend in the return on total capital reflects positively on the company's financial performance and management's efficiency in utilizing capital resources to drive profitability and create value for shareholders.
Peer comparison
Feb 29, 2024