Hayward Holdings Inc (HAYW)
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 | 206,345 | 174,687 | 299,235 | 333,004 | 131,400 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,423,650 | 1,311,460 | 1,223,030 | 1,369,510 | 209,200 |
| Return on total capital | 14.49% | 13.32% | 24.47% | 24.32% | 62.81% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $206,345K ÷ ($—K + $1,423,650K)
= 14.49%
Hayward Holdings Inc's return on total capital has demonstrated a notable decline over the years, decreasing from 62.81% on December 31, 2020, to 24.32% on December 31, 2021, and further to 24.47% on December 31, 2022. This downward trend in return on total capital indicates a potential inefficiency in utilizing the total capital invested in the company's operations. Subsequently, the return on total capital declined to 13.32% on December 31, 2023, before slightly improving to 14.49% on December 31, 2024. The fluctuations in the return on total capital suggest that Hayward Holdings Inc may need to reevaluate its capital allocation strategies and operational efficiencies to enhance overall profitability and maximize returns for its invested capital.
Peer comparison
Dec 31, 2024