Griffon Corporation (GFF)
Return on total capital
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 401,174 | 372,147 | 386,902 | 206,900 | 214,127 | -300,365 | -216,882 | -39,867 | -90,343 | 377,986 | 235,043 | 167,333 | 182,039 | 187,400 | 193,971 | 169,746 | 146,010 | 143,329 | 129,265 | 129,020 |
| Long-term debt | US$ in thousands | 1,515,900 | 1,499,210 | 1,577,210 | 1,430,240 | 1,459,900 | 1,536,420 | 1,491,560 | 1,507,680 | 1,561,000 | 1,574,700 | 1,941,720 | 1,037,760 | 1,033,200 | 1,042,610 | 1,043,860 | 1,037,410 | 1,037,040 | 1,123,360 | 1,216,230 | 1,137,130 |
| Total stockholders’ equity | US$ in thousands | 224,888 | 223,510 | 202,186 | 285,022 | 315,244 | 335,706 | 468,311 | 526,848 | 477,570 | 906,315 | 883,214 | 812,385 | 807,158 | 785,341 | 764,431 | 740,047 | 700,151 | 508,455 | 476,454 | 494,693 |
| Return on total capital | 23.05% | 21.60% | 21.74% | 12.06% | 12.06% | -16.04% | -11.07% | -1.96% | -4.43% | 15.24% | 8.32% | 9.04% | 9.89% | 10.25% | 10.73% | 9.55% | 8.40% | 8.78% | 7.64% | 7.91% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $401,174K ÷ ($1,515,900K + $224,888K)
= 23.05%
Griffon Corporation's return on total capital has shown fluctuations over the past eight quarters. The return on total capital was positive and relatively strong in the recent quarters, ranging from 21.60% to 23.05%. This indicates that Griffon Corporation has been effectively generating returns on the total capital employed in its operations.
There was a significant improvement from negative returns in the first two quarters of 2023 to positive returns in the subsequent quarters. This improvement reflects the company's efforts to enhance operational efficiency and profitability.
Overall, Griffon Corporation has shown a stable performance in terms of return on total capital, with occasional fluctuations. The positive trend in the most recent quarters suggests that the company may be effectively utilizing its capital to generate returns for its shareholders.