Graco Inc (GGG)
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 | 613,993 | 641,109 | 619,452 | 606,108 | 575,621 | 552,281 | 532,521 | 518,725 | 518,680 | 518,776 | 518,501 | 429,507 | 385,931 | 356,912 | 333,359 | 399,318 | 418,987 | 409,650 | 420,863 | 418,748 |
| Long-term debt | US$ in thousands | 0 | 0 | 0 | 75,000 | 75,000 | 75,000 | 75,000 | 75,000 | 75,000 | 150,000 | 150,000 | 150,000 | 150,000 | 275,000 | 400,000 | 400,000 | 164,298 | 192,101 | 179,081 | 173,738 |
| Total stockholders’ equity | US$ in thousands | 2,224,220 | 2,188,530 | 2,116,310 | 1,986,340 | 1,859,650 | 1,788,310 | -94,913 | -82,429 | 1,709,340 | 1,564,350 | 1,481,260 | 1,382,500 | 1,283,900 | 1,165,940 | 1,026,970 | 1,018,660 | 1,024,930 | 983,796 | 925,958 | 844,438 |
| Return on total capital | 27.60% | 29.29% | 29.27% | 29.40% | 29.75% | 29.64% | — | — | 29.07% | 30.26% | 31.79% | 28.03% | 26.91% | 24.77% | 23.36% | 28.15% | 35.23% | 34.84% | 38.09% | 41.13% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $613,993K ÷ ($0K + $2,224,220K)
= 27.60%
The return on total capital for Graco Inc has exhibited fluctuating trends over the past few quarters. It ranged from a low of 23.36% in June 2020 to a high of 41.13% in March 2019. The latest reported return on total capital as of December 31, 2023, stood at 27.60%, showing a slight decrease from the previous quarter's figure of 29.75%.
Overall, the return on total capital for Graco Inc has generally been strong, with several periods showing returns above 30%. However, there have been some quarters where the return dipped below this level. It's important to continue monitoring this metric to ensure that the company is effectively utilizing its capital to generate returns for its shareholders.
Peer comparison
Dec 31, 2023