ESCO Technologies Inc (ESE)
Return on total capital
| 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 145,089 | 138,645 | 136,139 | 129,311 | 127,747 | 126,421 | 119,253 | 116,322 | 111,335 | 94,877 | 83,467 | 81,360 | 82,871 | 46,088 | 48,793 | 48,560 | 122,190 | 369,845 | 372,609 | 375,541 |
| Long-term debt | US$ in thousands | 102,000 | 153,000 | 171,000 | 152,000 | 82,000 | 128,000 | 141,000 | 112,000 | 133,000 | 181,000 | 176,000 | 178,000 | 134,000 | 28,000 | 2,000 | 34,000 | 40,000 | 130,000 | 130,000 | 130,000 |
| Total stockholders’ equity | US$ in thousands | 1,237,350 | 1,193,690 | 1,166,410 | 1,154,090 | 1,131,140 | 1,107,040 | 1,080,800 | 1,066,400 | 1,048,160 | 1,029,880 | 1,021,170 | 1,015,280 | 1,019,700 | 1,004,850 | 990,660 | 976,162 | 959,026 | 943,457 | 926,207 | 915,491 |
| Return on total capital | 10.83% | 10.30% | 10.18% | 9.90% | 10.53% | 10.24% | 9.76% | 9.87% | 9.43% | 7.84% | 6.97% | 6.82% | 7.18% | 4.46% | 4.92% | 4.81% | 12.23% | 34.45% | 35.28% | 35.92% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $145,089K ÷ ($102,000K + $1,237,350K)
= 10.83%
ESCO Technologies Inc's return on total capital has shown fluctuating trends over the past few quarters. The return on total capital has been relatively stable around the 10% mark in the recent quarters, ranging from 9.76% to 10.83%. This suggests that the company has been able to generate consistent returns on the total capital employed in its operations.
However, there was a significant decrease in return on total capital in the first quarter of 2021, dropping to 4.46%, and gradually improved thereafter. The return spiked to 34.45% and 35.28% in the third and fourth quarters of 2019, respectively, indicating exceptional performance during that period.
Overall, ESCO Technologies Inc's return on total capital has demonstrated some variability but generally maintains a healthy level above 7%, reflecting the company's ability to effectively utilize its capital resources to generate returns for its stakeholders. It is essential for stakeholders to monitor these trends to assess the company's operational efficiency and financial performance over time.
Peer comparison
Sep 30, 2024