Comfort Systems USA Inc (FIX)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 398,475 | 249,210 | 196,470 | 199,925 | 161,059 |
| Long-term debt | US$ in thousands | 39,345 | 247,245 | 385,242 | 235,733 | 205,318 |
| Total stockholders’ equity | US$ in thousands | 1,277,830 | 999,923 | 805,666 | 696,429 | 585,304 |
| Return on total capital | 30.25% | 19.98% | 16.50% | 21.45% | 20.37% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $398,475K ÷ ($39,345K + $1,277,830K)
= 30.25%
Comfort Systems USA, Inc. has shown a fluctuating trend in its return on total capital over the past five years. In 2023, the return on total capital increased significantly to 31.47%, marking a notable improvement compared to the prior year. This indicates that the company was able to generate a higher level of profit relative to the total capital employed in the business during the year.
In 2022, the return on total capital was 20.08%, reflecting a moderate performance compared to the preceding and subsequent years. The return dipped in 2021 to 15.66%, indicating a decrease in the company's profitability relative to the capital invested.
The return on total capital rebounded in 2020 to 20.30%, registering a slight increase compared to the prior year. The performance in 2019 was relatively stable with a return on total capital of 19.96%.
Overall, the company's return on total capital has shown variability over the years, with the highest return recorded in 2023. This metric provides insight into Comfort Systems USA, Inc.'s ability to utilize its capital efficiently to generate profits for its stakeholders.
Peer comparison
Dec 31, 2023