Graco Inc (GGG)
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 | 439,652 | 493,230 | 503,223 | 498,899 | 530,735 | 632,480 | 614,554 | 606,108 | 575,621 | 552,281 | 532,521 | 518,725 | 518,680 | 519,030 | 518,188 | 462,103 | 418,527 | 391,509 | 368,523 | 401,573 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,584,140 | 2,513,290 | 2,418,480 | 2,335,650 | 2,224,220 | 2,188,530 | 2,116,310 | 1,986,340 | 1,859,650 | 1,788,310 | 1,757,270 | 1,690,260 | 1,709,340 | 1,564,350 | 1,481,260 | 1,382,500 | 1,283,900 | 1,165,940 | 1,026,970 | 1,018,660 |
| Return on total capital | 17.01% | 19.62% | 20.81% | 21.36% | 23.86% | 28.90% | 29.04% | 30.51% | 30.95% | 30.88% | 30.30% | 30.69% | 30.34% | 33.18% | 34.98% | 33.43% | 32.60% | 33.58% | 35.88% | 39.42% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $439,652K ÷ ($—K + $2,584,140K)
= 17.01%
Graco Inc's return on total capital has shown a gradual decline over the past few years, indicating potential challenges in generating profits relative to the capital employed in the business. The ratio started at a relatively high level of 39.42% in March 2020, but steadily decreased to 17.01% by December 2024. This downward trend suggests that the company may be experiencing difficulties in efficiently utilizing its total capital to generate earnings. Graco Inc may need to analyze its investment and operational strategies to improve its return on total capital in order to enhance profitability and shareholder value.
Peer comparison
Dec 31, 2024