Hexcel Corporation (HXL)
Return on total capital
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 186,100 | 224,800 | 215,900 | 205,400 | 215,300 | 208,200 | 205,400 | 207,900 | 175,200 | 157,700 | 139,700 | 92,100 | 51,800 | 6,500 | -53,800 | -63,900 | 12,500 | 133,000 | 280,000 | 390,300 |
| Long-term debt | US$ in thousands | 700,600 | 805,100 | 794,900 | 714,600 | 699,400 | 754,100 | 779,000 | 768,500 | 723,300 | 797,000 | 812,000 | 857,500 | 822,400 | 876,400 | 904,500 | 912,000 | 925,500 | 998,700 | 1,264,700 | 1,389,500 |
| Total stockholders’ equity | US$ in thousands | 1,527,900 | 1,589,500 | 1,571,200 | 1,632,100 | 1,716,500 | 1,646,300 | 1,666,100 | 1,622,200 | 1,554,200 | 1,445,000 | 1,480,300 | 1,487,100 | 1,485,500 | 1,494,300 | 1,502,800 | 1,486,900 | 1,510,200 | 1,499,400 | 1,436,900 | 1,421,100 |
| Return on total capital | 8.35% | 9.39% | 9.12% | 8.75% | 8.91% | 8.67% | 8.40% | 8.70% | 7.69% | 7.03% | 6.09% | 3.93% | 2.24% | 0.27% | -2.23% | -2.66% | 0.51% | 5.32% | 10.36% | 13.89% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $186,100K ÷ ($700,600K + $1,527,900K)
= 8.35%
Hexcel Corporation's return on total capital has shown fluctuation over the period from March 31, 2020, to December 31, 2024. The return on total capital started at a healthy 13.89% in March 2020 but gradually declined to its lowest point of -2.66% in March 2021 before showing signs of recovery. Subsequently, there was an improvement in the return on total capital, reaching 9.12% in June 2024.
Overall, the return on total capital improved from negative territory in early 2021 to positive levels by the end of 2024, demonstrating a trend of recovery and enhancement in the company's ability to generate returns relative to its total capital employed. This positive trend is indicative of Hexcel Corporation's efforts to optimize its capital allocation and operational efficiency.
Peer comparison
Dec 31, 2024