Hexcel Corporation (HXL)

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	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	428,900	427,800	416,800	397,900
Long-term debt	US$ in thousands	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	1,050,600	1,115,200	1,115,800	1,160,000
Total stockholders’ equity	US$ in thousands	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	1,446,100	1,417,800	1,442,400	1,372,400
Return on total capital		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%	17.18%	16.89%	16.29%	15.71%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $215,300K ÷ ($699,400K + $1,716,500K)
= 8.91%

Hexcel Corp.'s return on total capital has shown a positive trend over the past eight quarters, indicating an improvement in the company's capital utilization and efficiency. The return on total capital increased steadily from 4.13% in Q1 2022 to 9.25% in Q4 2023, reflecting a consistent growth in profitability relative to the capital employed. This upward trend suggests that Hexcel Corp. has been deploying its total capital more effectively to generate returns for its stakeholders. The company's ability to sustain and enhance its return on total capital bodes well for its financial performance and overall value creation.