Edgewell Personal Care Co (EPC)
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 | 215,200 | 226,200 | 235,500 | 200,200 | 198,500 | 195,500 | 198,300 | 214,000 | 205,400 | 214,200 | 191,400 | 141,900 | 147,200 | 148,500 | 162,500 | -345,400 | -307,400 | -327,700 | -344,400 | 180,600 |
| Long-term debt | US$ in thousands | 1,452,300 | 1,360,700 | 1,323,100 | 1,413,600 | 1,492,000 | 1,391,400 | 1,356,900 | 1,414,300 | 1,432,700 | 1,234,200 | 1,233,600 | 1,233,000 | 1,238,400 | 1,237,900 | 1,237,400 | 1,098,300 | 1,098,100 | 1,097,800 | 1,097,500 | 1,312,300 |
| Total stockholders’ equity | US$ in thousands | 1,545,800 | 1,540,500 | 1,551,100 | 1,507,000 | 1,494,600 | 1,467,100 | 1,478,100 | 1,515,500 | 1,552,300 | 1,590,800 | 1,511,600 | 1,464,100 | 1,465,200 | 1,438,600 | 1,368,200 | 1,347,300 | 1,348,100 | 1,303,500 | 1,335,200 | 1,782,100 |
| Return on total capital | 7.18% | 7.80% | 8.19% | 6.85% | 6.65% | 6.84% | 6.99% | 7.30% | 6.88% | 7.58% | 6.97% | 5.26% | 5.44% | 5.55% | 6.24% | -14.12% | -12.57% | -13.65% | -14.16% | 5.84% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $215,200K ÷ ($1,452,300K + $1,545,800K)
= 7.18%
Analyzing Edgewell Personal Care Co's return on total capital over the past 8 quarters, we observe a fluctuating trend. The return on total capital ranged from 6.54% to 8.50%, with Q3 2023 showing the highest return at 8.50% and Q1 2023 the lowest at 6.54%. Overall, the return on total capital has been relatively stable, hovering around the 7% to 8% range over the period analyzed.
The company's ability to generate returns on its total capital investment has shown consistency, albeit with some variability. It is essential to monitor this ratio over time to assess the company's efficiency in utilizing its capital to generate profits for shareholders. In the future, it will be crucial for Edgewell Personal Care Co to maintain or improve its return on total capital to demonstrate sustainable financial performance and value creation for stakeholders.
Peer comparison
Dec 31, 2023