Flowserve Corporation (FLS)
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 | 481,384 | 477,446 | 437,474 | 392,063 | 324,606 | 279,966 | 275,320 | 251,083 | 200,619 | 202,537 | 210,183 | 216,273 | 285,364 | 320,149 | 356,626 | 394,624 | 365,192 | 350,499 | 364,385 | 348,422 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,007,660 | 2,054,300 | 1,970,060 | 1,953,980 | 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 | 1,732,470 | 1,673,420 | 1,662,570 | 1,659,430 |
| Return on total capital | 23.98% | 23.24% | 22.21% | 20.06% | 16.77% | 14.94% | 14.61% | 13.60% | 10.99% | 12.22% | 12.21% | 12.32% | 15.82% | 18.20% | 20.48% | 23.05% | 21.08% | 20.95% | 21.92% | 21.00% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $481,384K ÷ ($—K + $2,007,660K)
= 23.98%
The return on total capital of Flowserve Corporation has exhibited fluctuations over the quarters in the depicted period. Starting at 21.00% in March 2020, the return increased to 23.05% by March 2021, indicating improved capital efficiency. However, the return declined in the subsequent quarters, hitting a low of 10.99% by December 2022, reflecting potential challenges in capital utilization during that period.
From March 2023 onwards, there was a reversal in the trend as the return on total capital gradually increased, reaching 23.98% by December 2024. This significant improvement suggests enhanced effectiveness in generating profits from the total capital employed by the company.
Overall, the return on total capital ratio showcases the company's ability to generate profits relative to the total capital invested over time, with the recent uptrend indicating a positive trajectory in capital utilization efficiency and potentially improved financial performance.
Peer comparison
Dec 31, 2024