Insteel Industries Inc (IIIN)
Return on total capital
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 25,376 | 26,577 | 31,402 | 28,984 | 41,842 | 66,144 | 102,512 | 146,205 | 161,818 | 162,785 | 136,591 | 105,621 | 86,199 | 63,062 | 47,881 | 34,165 | 24,276 | 12,865 | 7,060 | 2,941 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 350,855 | 346,015 | 340,621 | 333,595 | 381,505 | 375,066 | 364,978 | 360,674 | 389,744 | 364,924 | 325,147 | 286,020 | 302,038 | 276,996 | 258,736 | 243,734 | 264,803 | 257,066 | 250,831 | 246,180 |
| Return on total capital | 7.23% | 7.68% | 9.22% | 8.69% | 10.97% | 17.64% | 28.09% | 40.54% | 41.52% | 44.61% | 42.01% | 36.93% | 28.54% | 22.77% | 18.51% | 14.02% | 9.17% | 5.00% | 2.81% | 1.19% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $25,376K ÷ ($—K + $350,855K)
= 7.23%
The return on total capital for Insteel Industries Inc has shown fluctuations over the past few years. From September 2021 to September 2022, the return on total capital has been steadily increasing, reaching a peak of 44.61% in June 2022. However, there was a slight decline in the subsequent quarters, with a lower return recorded in September 2022 compared to June 2022.
Despite the decrease, the return on total capital remained relatively high, indicating that the company has been effectively utilizing its capital to generate profits. The return on total capital peaked at 40.54% in December 2022 but then saw a significant spike to 28.09% in March 2023.
The return on total capital continued to rise over the next few quarters, reaching its highest point of 28.54% in June 2023, followed by a notable spike to 17.64% in September 2023. This trend continued into December 2023, where there was a slight increase to 10.97%.
However, in the most recent quarters, the return on total capital has shown a declining trend, falling to 7.23% in September 2024. Overall, the return on total capital for Insteel Industries Inc has exhibited variability but has generally remained at decent levels, indicating the company's ability to generate profits relative to its total capital employed.
Peer comparison
Sep 30, 2024