Innospec Inc (IOSP)

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	177,900	181,300	177,600	171,100	161,600	163,700	171,900	184,000	187,300	176,200	157,500	148,200	132,100	126,000	111,400	21,000	33,700	48,100	69,500	154,600
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	0	0	0	38,800	58,700
Total stockholders’ equity	US$ in thousands	1,211,200	1,243,400	1,192,600	1,183,600	1,147,100	1,125,400	1,092,200	1,078,200	1,038,000	1,089,400	1,067,900	1,068,200	1,032,400	992,500	973,600	958,600	944,400	-64,300	899,200	943,800
Return on total capital		14.69%	14.58%	14.89%	14.46%	14.09%	14.55%	15.74%	17.07%	18.04%	16.17%	14.75%	13.87%	12.80%	12.70%	11.44%	2.19%	3.57%	—	7.41%	15.42%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $177,900K ÷ ($—K + $1,211,200K)
= 14.69%

The return on total capital for Innospec Inc has shown varying performance over the periods provided. From March 31, 2020, to December 31, 2020, there was a declining trend, with a significant drop from 15.42% to 3.57% during this period. However, starting from March 31, 2021, there was a gradual improvement in the return on total capital, reaching 18.04% by December 31, 2022.

Subsequently, the return on total capital fluctuated but remained relatively stable around the mid-teens, ranging from 13.87% to 14.89% between March 31, 2022, and June 30, 2024. This indicates the company's ability to generate profits relative to the total capital employed was fairly consistent during this period.

Overall, the return on total capital for Innospec Inc has displayed variability, but in recent periods, it has stabilized in the mid to high teens, suggesting improved efficiency in utilizing its capital resources to generate returns for its stakeholders.