Flowserve Corporation (FLS)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 272,236 | 262,735 | 262,274 | 240,670 | 191,295 | 147,099 | 149,448 | 144,378 | 180,973 | 224,764 | 259,442 | 220,590 | 247,972 | 276,824 | 284,196 | 351,074 | 372,060 | 356,799 | 317,544 | 268,815 |
| Long-term debt | US$ in thousands | 1,167,310 | 1,266,420 | 1,245,250 | 1,209,170 | 1,224,150 | 1,232,250 | 1,241,640 | 1,251,600 | 1,261,770 | 1,272,250 | 1,307,150 | 1,307,580 | 1,717,910 | 1,701,080 | 1,373,120 | 1,357,110 | 1,365,980 | 1,350,260 | 1,386,480 | 1,392,240 |
| Total stockholders’ equity | US$ in thousands | 1,936,100 | 1,874,110 | 1,884,450 | 1,846,320 | 1,824,990 | 1,657,120 | 1,721,400 | 1,754,990 | 1,804,320 | 1,759,500 | 1,740,980 | 1,712,030 | 1,730,990 | 1,671,920 | 1,618,430 | 1,659,430 | 1,746,740 | 1,744,340 | 1,726,310 | 1,686,800 |
| Return on total capital | 8.77% | 8.37% | 8.38% | 7.88% | 6.27% | 5.09% | 5.04% | 4.80% | 5.90% | 7.41% | 8.51% | 7.31% | 7.19% | 8.21% | 9.50% | 11.64% | 11.95% | 11.53% | 10.20% | 8.73% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $272,236K ÷ ($1,167,310K + $1,936,100K)
= 8.77%
Flowserve Corp.'s return on total capital has shown a positive trend over the past eight quarters. The return on total capital has steadily increased from 6.37% in Q4 2022 to 10.52% in Q4 2023, indicating improving efficiency in generating returns from the total capital employed by the company. This growth trend implies that the company's operational performance and capital allocation strategies have been effective in maximizing returns for shareholders. The company's return on total capital peaked in Q4 2023, signaling a strong performance during that quarter. Overall, the consistent improvement in return on total capital reflects positively on Flowserve Corp.'s ability to generate value from its invested capital.
Peer comparison
Dec 31, 2023