ESCO Technologies Inc (ESE)
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 | 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 | 309,977 | 304,405 | 305,072 |
| Long-term debt | US$ in thousands | 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 | 265,000 | 197,000 | 197,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 826,222 | 811,807 | 794,396 |
| Return on total capital | 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% | 28.41% | 30.17% | 30.77% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $129,311K ÷ ($152,000K + $1,154,090K)
= 9.90%
Esco Technologies, Inc.'s return on total capital has shown a generally positive trend over the past eight quarters, with fluctuations within a relatively narrow range. The return on total capital ranged from a low of 6.71% in Q2 2022 to a high of 10.51% in Q4 2023.
The company's return on total capital has been consistently above 9% since Q1 2023, indicating a healthy utilization of capital to generate profits. This suggests that Esco Technologies, Inc. has been effectively managing its capital structure to generate adequate returns for its investors.
Overall, the trend in Esco Technologies, Inc.'s return on total capital over the past eight quarters indicates a relatively stable and positive performance in terms of how efficiently the company is using its total capital to generate profits.
Peer comparison
Dec 31, 2023