ESCO Technologies Inc (ESE)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 145,089 | 127,747 | 111,335 | 82,871 | 119,621 |
| Long-term debt | US$ in thousands | 102,000 | 82,000 | 133,000 | 134,000 | 40,000 |
| Total stockholders’ equity | US$ in thousands | 1,237,350 | 1,131,140 | 1,048,160 | 1,019,700 | 959,026 |
| Return on total capital | 10.83% | 10.53% | 9.43% | 7.18% | 11.97% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $145,089K ÷ ($102,000K + $1,237,350K)
= 10.83%
ESCO Technologies Inc's return on total capital has been relatively stable over the past five years, ranging from 7.18% to 11.97%. This ratio indicates the company's ability to generate profits from both its equity and debt capital. The increasing trend in the return on total capital from 2020 to 2021 followed by a slight decrease in 2022, before rising again in 2023 and 2024, suggests the company's effective utilization of capital resources to generate returns for its shareholders. The return on total capital exceeding 10% in recent years indicates that ESCO Technologies Inc has been efficient in generating profits from the total capital employed in its operations. Overall, the consistent and relatively healthy return on total capital reflects positively on the company's financial performance and management efficiency in utilizing its capital resources.
Peer comparison
Sep 30, 2024