Hayward Holdings Inc (HAYW)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 94,003 | 233,881 | 260,103 |
| Long-term debt | US$ in thousands | 1,098,440 | 1,109,700 | 995,000 |
| Total stockholders’ equity | US$ in thousands | 1,311,460 | 1,223,030 | 1,369,510 |
| Return on total capital | 3.90% | 10.03% | 11.00% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $94,003K ÷ ($1,098,440K + $1,311,460K)
= 3.90%
Hayward Holdings Inc's return on total capital has shown a decreasing trend over the three years analyzed. In 2021, the return on total capital was the highest at 14.14%, indicating the company generated $14.14 in profit for every $100 of total capital deployed. However, this metric declined to 12.65% in 2022 and further dropped to 7.83% in 2023.
The decreasing trend in return on total capital suggests that the company may be less effective in generating profits relative to the total capital employed in the business. It is essential for Hayward Holdings Inc to analyze the factors contributing to this decline in order to improve its operational efficiency and profitability in the future.
Peer comparison
Dec 31, 2023