Chart Industries Inc (GTLS)
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 | 654,700 | 607,600 | 519,700 | 447,800 | 344,300 | 245,100 | 195,100 | 122,500 | 130,700 | 104,000 | 83,300 | 72,500 | 88,300 | 86,600 | 99,600 | 131,000 | 117,000 | 126,900 | 112,500 | 103,900 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,828,800 | 2,971,200 | 2,749,100 | 2,738,500 | 2,786,500 | 2,757,500 | 2,807,200 | 2,706,900 | 2,684,300 | 1,617,400 | 1,605,400 | 1,620,700 | 1,625,200 | 1,582,400 | 1,576,400 | 1,559,000 | 1,591,300 | 1,292,100 | 1,246,400 | 1,210,100 |
| Return on total capital | 23.14% | 20.45% | 18.90% | 16.35% | 12.36% | 8.89% | 6.95% | 4.53% | 4.87% | 6.43% | 5.19% | 4.47% | 5.43% | 5.47% | 6.32% | 8.40% | 7.35% | 9.82% | 9.03% | 8.59% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $654,700K ÷ ($—K + $2,828,800K)
= 23.14%
The return on total capital of Chart Industries Inc has shown variability over the past few years. From March 31, 2020, to September 30, 2021, the return on total capital fluctuated in the range of 5.47% to 9.82%. It experienced a decline during the latter part of 2021, dropping to 5.43% by December 31, 2021.
However, there was a notable improvement in the return on total capital from March 31, 2022, onwards. The ratio increased steadily, reaching 23.14% by December 31, 2024, indicating a significant enhancement in the company's ability to generate returns from the total capital employed.
This upward trend suggests that Chart Industries Inc has been effectively utilizing its total capital to generate higher returns for its investors. The substantial increase in the return on total capital over the period signifies improved operational efficiency and profitability, reflecting positively on the company's overall financial health and performance.