ESAB Corp (ESAB)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 435,295 | 395,436 | 353,039 | 319,088 | 224,547 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,769,000 | 1,607,400 | 1,350,210 | 2,460,740 | 2,502,630 |
| Return on total capital | 24.61% | 24.60% | 26.15% | 12.97% | 8.97% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $435,295K ÷ ($—K + $1,769,000K)
= 24.61%
ESAB Corp's return on total capital has shown a positive trend over the years, reflecting improving efficiency in generating profits in relation to the total capital invested. The return on total capital increased from 8.97% on December 31, 2020, to 12.97% on December 31, 2021, indicating a growth in profitability. The significant jump to 26.15% on December 31, 2022, demonstrates a notable enhancement in capital utilization efficiency. This trend was sustained in the following years, with returns ranging between 24.60% and 24.61% in 2023 and 2024, respectively, signifying a stable and robust performance in generating returns relative to the total capital employed. Overall, ESAB Corp's consistent improvement in return on total capital reflects effective capital management and operational performance, which may be attractive to investors and stakeholders.
Peer comparison
Dec 31, 2024