Hayward Holdings Inc (HAYW)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 175,222 | 155,796 | 167,227 | 207,000 | 285,573 | 329,036 | 366,490 | 344,693 | 317,974 | |||
| Long-term debt | US$ in thousands | 1,098,440 | 1,101,300 | 1,104,100 | 1,106,900 | 1,109,700 | 987,500 | 990,000 | — | 995,000 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,311,460 | 1,280,330 | 1,269,820 | 1,230,120 | 1,223,030 | 1,196,260 | 1,221,620 | 1,372,920 | 1,369,510 | 1,302,300 | 1,264,000 | 1,206,660 |
| Return on total capital | 7.27% | 6.54% | 7.04% | 8.86% | 12.24% | 15.07% | 16.57% | 25.11% | 13.45% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $175,222K ÷ ($1,098,440K + $1,311,460K)
= 7.27%
Hayward Holdings Inc's return on total capital has shown a downward trend over the past eight quarters. In Q4 2023, the return on total capital was 7.83%, a decrease from the previous quarter's 6.76%. This marks a continuing decline from the peak of 16.45% in Q2 2022.
The decreasing trend in return on total capital may indicate that the company is becoming less efficient in generating returns from its total capital employed. It is important for the company to closely monitor and address the factors contributing to this decline to ensure continued profitability and sustainable growth. Further analysis of the company's profitability, capital structure, and operational efficiency may provide insights into improving its return on total capital in the future.
Peer comparison
Dec 31, 2023