Insteel Industries Inc (IIIN)
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 | 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 | 7,623 | 21,760 | 35,835 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 5,365 |
| Total stockholders’ equity | US$ in thousands | 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 | 246,017 | 248,324 | 246,530 |
| Return on total capital | 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% | 3.10% | 8.76% | 14.23% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $28,984K ÷ ($—K + $333,595K)
= 8.69%
The return on total capital for Insteel Industries Inc has shown variability over the periods provided. From December 2019 to December 2023, the return on total capital ranged from a low of 1.19% to a high of 44.61%.
In general, the return on total capital has been increasing over time, indicating that the company has been able to generate more income from its total capital base. The trend shows improvement in the company's ability to generate profits per dollar of invested capital.
The significant increase in return on total capital from 1.19% in December 2019 to 44.61% in June 2022 is noteworthy and may indicate improvements in the company's efficiency, profitability, or financial management.
However, it is important to note that the return on total capital has fluctuated during the periods provided, suggesting potential changes in the company's operations, financial performance, or economic conditions impacting its profitability and capital efficiency. Monitoring these fluctuations and analyzing the underlying factors driving them can provide valuable insights into Insteel Industries Inc's financial health and performance.
Peer comparison
Dec 31, 2023