Flowserve Corporation (FLS)
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 | 455,456 | 290,674 | 200,623 | 285,363 | 250,304 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,007,660 | 1,936,100 | 1,824,990 | 1,804,320 | 1,732,470 |
| Return on total capital | 22.69% | 15.01% | 10.99% | 15.82% | 14.45% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $455,456K ÷ ($—K + $2,007,660K)
= 22.69%
Based on the provided data, Flowserve Corporation's Return on Total Capital has shown fluctuating trends over the years. The Return on Total Capital was 14.45% as of December 31, 2020, increased to 15.82% by December 31, 2021, then decreased to 10.99% as of December 31, 2022. However, there was a significant improvement in the Return on Total Capital to 15.01% as of December 31, 2023, and a substantial increase to 22.69% by December 31, 2024.
This suggests that the company's efficiency in generating profits from its total capital has varied over the years. The upward trend in recent years indicates an improvement in the company's capital utilization and profitability. Investors and stakeholders may view the recent increase positively as it signifies enhanced performance and effective capital management by Flowserve Corporation.
Peer comparison
Dec 31, 2024