Hillenbrand Inc (HI)
Return on total capital
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -24,700 | -43,600 | 269,300 | 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 |
| Long-term debt | US$ in thousands | 1,872,400 | 2,068,900 | 2,087,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,423,000 | 1,409,500 | 1,651,100 | 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 |
| Return on total capital | -0.75% | -1.25% | 7.20% | 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% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-24,700K ÷ ($1,872,400K + $1,423,000K)
= -0.75%
The return on total capital for Hillenbrand Inc has displayed fluctuations over the past several quarters. In the most recent period ending in September 2024, the return on total capital was negative at -0.75%, indicating a lower performance in generating profits relative to the total capital employed in the business.
The return on total capital deteriorated from the previous quarter in June 2024, where it stood at -1.25%, further reflecting a decline in the profitability derived from the overall capital invested.
However, looking back to the preceding quarters, there were notable improvements in the return on total capital. In March 2024, the return on total capital rose significantly to 7.20%, followed by a substantial increase in December 2023 to 19.84%. This upward trend continued in September and June 2023, where the return on total capital reached 20.72% and 25.57%, respectively.
The highest return on total capital during the analyzed period was recorded in March 2023 at 25.96%, indicating a strong performance in generating profits relative to the total capital employed. Subsequently, there was a slight decrease in the return on total capital in December 2022 to 11.40%.
Overall, the return on total capital for Hillenbrand Inc has demonstrated variations in performance over the quarters, with periods of both growth and decline. It is essential for stakeholders to closely monitor these fluctuations to assess the company's efficiency in utilizing its total capital to generate returns.
Peer comparison
Sep 30, 2024