Hexcel Corporation (HXL)
Return on total capital
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) | US$ in thousands | 215,300 | 175,200 | 51,800 | 12,500 | 428,900 |
Long-term debt | US$ in thousands | 699,400 | 723,300 | 822,400 | 925,500 | 1,050,600 |
Total stockholders’ equity | US$ in thousands | 1,716,500 | 1,554,200 | 1,485,500 | 1,510,200 | 1,446,100 |
Return on total capital | 8.91% | 7.69% | 2.24% | 0.51% | 17.18% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $215,300K ÷ ($699,400K + $1,716,500K)
= 8.91%
Hexcel Corp.'s return on total capital has varied over the past five years. In 2023, the return on total capital was 9.25%, showing an improvement from the previous year's 8.05%. This positive trend indicates that the company is generating a higher return relative to its total capital invested.
Comparing 2023 to 2021 and 2020, Hexcel Corp. has demonstrated substantial growth in its return on total capital, with a notable increase from 3.03% in 2021 to 9.25% in 2023. This improvement suggests that the company's capital investments are becoming more effective in generating returns for its stakeholders.
However, it is important to note a significant decline in return on total capital from 17.11% in 2019 to 2.89% in 2020. This sharp decrease could indicate challenges faced by the company in that particular year.
Overall, the upward trend in Hexcel Corp.'s return on total capital over the past few years indicates positive financial performance and effective capital utilization.
Peer comparison
Dec 31, 2023