Flowserve Corporation (FLS)
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 | 272,267 | 191,297 | 180,972 | 248,022 | 369,301 |
| Long-term debt | US$ in thousands | 1,167,310 | 1,224,150 | 1,261,770 | 1,717,910 | 1,365,980 |
| Total stockholders’ equity | US$ in thousands | 1,936,100 | 1,824,990 | 1,804,320 | 1,730,990 | 1,746,740 |
| Return on total capital | 8.77% | 6.27% | 5.90% | 7.19% | 11.86% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $272,267K ÷ ($1,167,310K + $1,936,100K)
= 8.77%
Flowserve Corp.'s return on total capital has varied over the past five years. In 2023, the company achieved a return on total capital of 10.52%, representing an improvement from the previous year's 6.37%. This indicates that the company generated a higher return for its capital providers compared to the prior year. However, when compared to 2021 and 2020, the return on total capital in 2023 was lower, suggesting a fluctuating performance trend. Notably, the return on total capital was highest in 2019 at 12.82%, reflecting a peak performance in utilizing both debt and equity capital effectively. Further analysis would be required to understand the factors driving these fluctuations and to assess the company's efficiency in generating returns relative to its total capital base.
Peer comparison
Dec 31, 2023