Acushnet Holdings Corp (GOLF)
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 | 304,378 | 285,230 | 273,447 | 254,553 | 125,845 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 765,247 | 864,235 | 939,056 | 1,042,840 | 984,075 |
| Return on total capital | 39.78% | 33.00% | 29.12% | 24.41% | 12.79% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $304,378K ÷ ($—K + $765,247K)
= 39.78%
Acushnet Holdings Corp's return on total capital has shown a consistent upward trend over the years, reflecting an improvement in the company's efficiency in generating returns relative to its invested capital.
The return on total capital increased from 12.79% as of December 31, 2020, to 39.78% as of December 31, 2024, indicating a significant enhancement in the company's profitability and capital utilization.
This positive trend suggests that Acushnet Holdings Corp has been effectively deploying its capital to generate higher returns, which is a favorable indication of the company's operational efficiency and financial performance. It also signifies the company's ability to effectively manage its assets and liabilities to generate value for its shareholders.
Overall, the increasing return on total capital showcases Acushnet Holdings Corp's ability to create value from its capital investments and signifies a potentially strong financial performance and growth prospects for the company.
Peer comparison
Dec 31, 2024