Chart Industries Inc (GTLS)
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 | 392,300 | 296,400 | 233,700 | 167,600 | 151,500 | 111,800 | 83,900 | 79,800 | 88,500 | 90,600 | 104,900 | 105,200 | 92,200 | 85,200 | 80,500 | 70,900 | 52,000 | 62,800 | 70,900 | 74,000 |
| Long-term debt | US$ in thousands | 3,576,400 | 3,799,900 | 4,039,500 | 4,051,600 | 2,039,800 | 580,800 | 666,400 | 618,100 | 600,800 | 539,400 | 450,600 | 303,100 | 221,600 | 695,400 | 736,000 | 741,500 | 761,000 | 792,500 | 304,700 | 318,000 |
| Total stockholders’ equity | US$ in thousands | 2,786,500 | 2,625,900 | 2,674,200 | 2,670,700 | 2,675,500 | 1,617,400 | 1,605,400 | 1,620,700 | 1,616,600 | 1,582,400 | 1,576,400 | 1,559,000 | 1,572,700 | 1,286,200 | 1,240,700 | 1,210,100 | 1,227,600 | 1,198,500 | 1,193,900 | 888,800 |
| Return on total capital | 6.17% | 4.61% | 3.48% | 2.49% | 3.21% | 5.09% | 3.69% | 3.56% | 3.99% | 4.27% | 5.18% | 5.65% | 5.14% | 4.30% | 4.07% | 3.63% | 2.61% | 3.15% | 4.73% | 6.13% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $392,300K ÷ ($3,576,400K + $2,786,500K)
= 6.17%
Chart Industries Inc has shown a fluctuating trend in its return on total capital over the past eight quarters. The return on total capital ranged from a low of 2.39% in Q1 2023 to a high of 5.94% in Q4 2023. This indicates that the company's ability to generate profits relative to its total capital employed has varied significantly during this period. Overall, the company's return on total capital has been relatively moderate, with an average of approximately 4% over the past eight quarters.
It is important for investors and stakeholders to monitor this metric closely, as it reflects the efficiency and profitability of the company in utilizing its total capital resources to generate returns for its shareholders. The company should strive to consistently improve its return on total capital to enhance shareholder value and financial performance in the long term.