Hillenbrand Inc (HI)
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 | 736,100 | 750,200 | 762,700 | 763,200 | 348,100 | 357,200 | 321,300 | 318,900 | 354,100 | 402,800 | 620,500 | 608,700 | 429,400 | 299,700 | 208,500 | 183,700 | 292,200 | 341,300 | 335,200 | 344,600 |
| Long-term debt | US$ in thousands | 2,021,500 | 1,990,400 | 1,329,300 | 1,303,900 | 1,890,400 | 1,222,100 | 1,214,600 | 1,214,000 | 1,213,400 | 1,212,900 | 1,212,400 | 1,211,900 | 1,368,300 | 1,516,300 | 1,674,800 | 1,826,600 | 1,822,600 | 619,500 | 323,200 | 361,700 |
| Total stockholders’ equity | US$ in thousands | 1,688,600 | 1,630,300 | 1,654,000 | 1,635,600 | 1,162,600 | 1,082,900 | 1,127,000 | 1,254,500 | 1,232,600 | 1,209,600 | 1,230,200 | 1,214,400 | 1,185,900 | 1,059,000 | 1,036,600 | 1,009,000 | 1,127,100 | 754,100 | 781,200 | 756,800 |
| Return on total capital | 19.84% | 20.72% | 25.57% | 25.96% | 11.40% | 15.50% | 13.72% | 12.92% | 14.48% | 16.63% | 25.40% | 25.09% | 16.81% | 11.64% | 7.69% | 6.48% | 9.91% | 24.85% | 30.35% | 30.81% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $736,100K ÷ ($2,021,500K + $1,688,600K)
= 19.84%
Hillenbrand Inc's return on total capital has shown some fluctuations over the past eight quarters. In the most recent quarter (Q1 2024), the return on total capital was 8.38%, which is slightly higher than the previous quarter. However, it is lower compared to the levels seen in Q1-Q3 2023.
The return on total capital peaked in Q4 2022 at 16.42% and has since trended downwards. Despite the fluctuations, the return on total capital has generally remained above 8% in the past eight quarters, indicating that Hillenbrand Inc has been generating a positive return on its invested capital.
It is important for the company to continue monitoring and managing its capital efficiently to ensure sustainable returns for its investors.
Peer comparison
Dec 31, 2023