IDEX Corporation (IEX)
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 | 690,100 | 667,700 | 778,500 | 783,000 | 812,000 | 835,800 | 798,300 | 793,100 | 790,100 | 770,725 | 693,280 | 650,177 | 617,531 | 602,833 | 575,064 | 538,440 | 508,685 | 498,683 | 504,877 | 555,248 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,794,700 | 3,818,900 | 3,653,800 | 3,618,600 | 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 |
| Return on total capital | 18.19% | 17.48% | 21.31% | 21.64% | 22.93% | 24.68% | 24.35% | 24.56% | 26.00% | 27.50% | 24.86% | 22.43% | 22.03% | 22.11% | 21.52% | 20.63% | 20.03% | 20.81% | 22.33% | 24.90% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $690,100K ÷ ($—K + $3,794,700K)
= 18.19%
Return on total capital is a key financial metric that measures how efficiently a company generates profits from its total capital, which includes both debt and equity. Based on the provided data for IDEX Corporation, the return on total capital has shown fluctuations over the quarters.
From March 31, 2020 (24.90%) to September 30, 2022 (27.50%), there was a steady increase in the return on total capital, indicating improving efficiency in utilizing the company's total capital to generate profits. However, in the following quarters up to December 31, 2024, there was a decline in the return on total capital, reaching 18.19% by the end of 2024.
These fluctuations suggest that the company's profitability relative to its total capital has varied over the periods analyzed. It is important for investors and stakeholders to closely monitor these trends to assess the company's ability to generate returns on the capital invested in the business.
Peer comparison
Dec 31, 2024