ESAB Corp (ESAB)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 302,618 | 409,901 | 408,161 | 414,290 | 410,860 | 387,359 | 365,872 | 335,204 | 328,711 | 326,141 | 326,244 | 333,962 | 325,168 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,769,000 | 1,837,120 | 1,707,970 | 1,640,800 | 1,607,400 | 1,500,810 | 1,506,310 | 1,419,580 | 1,350,210 | 1,209,180 | 1,241,860 | 2,476,850 | 2,460,740 |
| Return on total capital | 17.11% | 22.31% | 23.90% | 25.25% | 25.56% | 25.81% | 24.29% | 23.61% | 24.35% | 26.97% | 26.27% | 13.48% | 13.21% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $302,618K ÷ ($—K + $1,769,000K)
= 17.11%
ESAB Corp's return on total capital has shown variability over the period from December 31, 2021, to December 31, 2024. The ratio started at 13.21% in December 2021, slightly increased to 13.48% by March 2022, and then experienced a significant improvement to 26.27% by June 2022. This upward trend continued, reaching a peak of 26.97% by September 2022. However, there was a slight decline in the ratio to 24.35% by December 2022.
Subsequently, from March 2023 to June 2024, the return on total capital remained relatively stable within the range of 23.61% to 25.81%. The ratio peaked again at 25.81% in September 2023, stayed elevated at 25.56% by December 2023, and then gradually decreased to 17.11% by December 2024.
Overall, ESAB Corp's return on total capital displays fluctuations, with periods of increase and decrease. It is important for stakeholders to monitor these changes in the ratio to gain insights into the company's efficiency in generating returns from its total capital employed.
Peer comparison
Dec 31, 2024