Graco Inc (GGG)
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 | — | 646,843 | 575,621 | 518,680 | 385,931 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,584,140 | 2,224,220 | 1,859,650 | 1,709,340 | 1,283,900 |
| Return on total capital | 0.00% | 29.08% | 30.95% | 30.34% | 30.06% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,584,140K)
= 0.00%
Graco Inc's return on total capital has shown a generally positive trend over the years, starting at 30.06% in 2020 and peaking at 30.95% in 2022. However, there was a slight dip to 29.08% in 2023. Notably, in 2024, the return on total capital dropped to 0.00%, which could indicate a significant decrease in profitability or capital efficiency. It is important for Graco Inc to investigate the reasons behind this sharp decline to identify any underlying issues affecting its capital allocation and financial performance. Monitoring and addressing fluctuations in return on total capital is crucial for ensuring sustainable and profitable operations in the long term.
Peer comparison
Dec 31, 2024