Hexcel Corporation (HXL)
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 | 186,100 | 215,300 | 175,200 | 51,800 | 12,500 |
| Long-term debt | US$ in thousands | 700,600 | 699,400 | 723,300 | 822,400 | 925,500 |
| Total stockholders’ equity | US$ in thousands | 1,527,900 | 1,716,500 | 1,554,200 | 1,485,500 | 1,510,200 |
| Return on total capital | 8.35% | 8.91% | 7.69% | 2.24% | 0.51% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $186,100K ÷ ($700,600K + $1,527,900K)
= 8.35%
Hexcel Corporation's return on total capital has shown a positive trend over the analyzed period, increasing steadily from 0.51% as of December 31, 2020, to 8.35% as of December 31, 2024. This indicates an improvement in the company's ability to generate profits relative to its total capital employed. The consistent growth in return on total capital suggests that Hexcel has effectively managed its capital investments and utilized its resources efficiently to generate higher returns for its investors. The steady improvement in this ratio reflects positively on the company's operational efficiency and profitability, demonstrating a strengthening financial position over the years.
Peer comparison
Dec 31, 2024