Exponent Inc (EXPO)
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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 92,304 | 110,698 | 118,784 | 112,915 | 111,322 | 114,963 | 117,843 | 133,245 | 140,842 | 142,185 | 137,491 | 121,586 | 108,927 | 103,283 | 91,571 | 71,319 | 83,249 | 86,865 | 89,642 | 105,345 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 421,068 | 410,274 | 393,213 | 374,311 | 356,085 | 353,635 | 357,079 | 341,856 | 320,752 | 319,800 | 337,494 | 386,564 | 417,065 | 404,989 | 387,767 | 377,608 | 361,498 | 343,197 | 332,567 | 323,497 |
| Return on total capital | 21.92% | 26.98% | 30.21% | 30.17% | 31.26% | 32.51% | 33.00% | 38.98% | 43.91% | 44.46% | 40.74% | 31.45% | 26.12% | 25.50% | 23.61% | 18.89% | 23.03% | 25.31% | 26.95% | 32.56% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $92,304K ÷ ($—K + $421,068K)
= 21.92%
Exponent Inc's return on total capital has exhibited fluctuations over the analyzed period, ranging from a high of 44.46% in September 2022 to a low of 18.89% in March 2021. The trend shows a general decline from the peak in September 2022 to December 2024, suggesting a potential decrease in the company's efficiency in generating profits relative to the total capital employed.
Despite the overall downward trend, there have been periods of recovery and improvement in return on total capital, notably in the first half of 2024 where the ratio stabilized around 30%. The company experienced a more significant decline towards the end of 2024 when the return on total capital dropped to 21.92%, indicating possible challenges or inefficiencies in capital utilization during that period.
Overall, it is essential for stakeholders to closely monitor Exponent Inc's return on total capital to assess its operational efficiency and profitability in deploying capital resources for sustainable growth and value creation.
Peer comparison
Dec 31, 2024