Exponent Inc (EXPO)
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 | 119,557 | 111,322 | 140,842 | 108,927 | 83,249 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 421,068 | 356,085 | 320,752 | 417,065 | 361,498 |
| Return on total capital | 28.39% | 31.26% | 43.91% | 26.12% | 23.03% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $119,557K ÷ ($—K + $421,068K)
= 28.39%
Exponent Inc's return on total capital has displayed variability over the past five years. The ratio increased consistently from 23.03% in December 31, 2020, to 43.91% in December 31, 2022, indicating a significant improvement in capital utilization and profitability. However, there was a dip in the return on total capital to 31.26% in December 31, 2023, followed by a further decrease to 28.39% by the end of December 31, 2024. Despite these fluctuations, the company has generally shown strong performance in generating returns in relation to its total capital employed.
Peer comparison
Dec 31, 2024