IDEX Corporation (IEX)
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 | 812,500 | 790,300 | 620,900 | 515,100 | 577,200 |
| Long-term debt | US$ in thousands | 1,325,100 | 1,468,700 | 1,190,300 | 1,044,400 | 848,864 |
| Total stockholders’ equity | US$ in thousands | 3,541,400 | 3,039,300 | 2,803,100 | 2,540,200 | 2,263,230 |
| Return on total capital | 16.70% | 17.53% | 15.55% | 14.37% | 18.55% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $812,500K ÷ ($1,325,100K + $3,541,400K)
= 16.70%
Idex Corporation's return on total capital has been relatively stable over the past five years, ranging from 14.85% to 19.28%. The company experienced a slight decrease in return on total capital in 2023 compared to the previous year, dropping to 15.27% from 17.17% in 2022. Despite this slight decline, Idex Corporation has consistently generated returns that exceed its cost of capital, indicating efficient utilization of both debt and equity to generate profits. It is essential for the company to continue monitoring and optimizing its capital structure to maintain healthy returns on total capital in the future.
Peer comparison
Dec 31, 2023