IDEX Corporation (IEX)
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 | 812,500 | 836,000 | 798,400 | 793,200 | 790,300 | 777,600 | 700,200 | 654,600 | 620,900 | 598,610 | 569,900 | 532,903 | 514,978 | 507,456 | 516,090 | 567,648 | 577,195 | 583,968 | 587,643 | 579,863 |
| Long-term debt | US$ in thousands | 1,325,100 | 1,320,800 | 1,471,500 | 1,470,700 | 1,468,700 | 1,191,100 | 1,190,900 | 1,190,600 | 1,190,300 | 1,190,080 | 1,189,830 | 1,044,590 | 1,044,400 | 1,044,110 | 1,044,440 | 999,020 | 848,864 | 848,728 | 848,555 | 848,437 |
| Total stockholders’ equity | US$ in thousands | 3,541,400 | 3,387,100 | 3,278,700 | 3,229,200 | 3,039,300 | 2,802,800 | 2,788,200 | 2,899,000 | 2,803,100 | 2,726,240 | 2,672,800 | 2,609,930 | 2,540,200 | 2,396,530 | 2,261,040 | 2,229,790 | 2,263,230 | 2,163,050 | 2,112,040 | 2,055,230 |
| Return on total capital | 16.70% | 17.76% | 16.81% | 16.88% | 17.53% | 19.47% | 17.60% | 16.01% | 15.55% | 15.29% | 14.75% | 14.58% | 14.37% | 14.75% | 15.61% | 17.58% | 18.55% | 19.39% | 19.85% | 19.97% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $812,500K ÷ ($1,325,100K + $3,541,400K)
= 16.70%
The return on total capital for Idex Corporation has ranged from 15.27% to 19.04% over the past eight quarters. The return on total capital measures the company's ability to generate profits from the capital invested in the business.
The declining trend in return on total capital from 19.04% in Q3 2022 to 15.27% in Q4 2023 may indicate a decrease in the company's efficiency in utilizing its total capital to generate profits. This trend warrants further investigation to understand the factors contributing to this decline.
On the positive side, the return on total capital has mostly remained above 15%, indicating that Idex Corporation has been successful in generating satisfactory returns on the total capital employed in the business. It is essential for the company to continue monitoring and managing its capital efficiency to ensure sustainable profitability and value creation for its stakeholders.
Peer comparison
Dec 31, 2023